Established 1961 9 Business Monday, May 10, 2021 Zain Group generates revenue of $1.3bn, net profit of $147m for first three months of 2021 KUWAIT: Zain Group, a leading mobile innovator with operations in seven markets across the Middle East and Africa, Vice-Chairman & Group announced its consolidated financial results Chairman Ahmed Al-Tahous: for the first quarter (Q1) ended March 31, CEO Bader Al-Kharafi: “We 2021. Zain served 48.5 million customers at “Board working closely with the end of the period. continue to maintain healthy Zain Group generated consolidated rev- management in mitigating enue of KD 382 million ($1.3 billion) for the cash flows and focus on first quarter of 2021, down 6 percent year- the unavoidable currency on-year (Y-o-Y). EBITDA for the quarter digital transformation in reached KD 158 million ($523 million), down devaluations and impact of 7 percent Y-o-Y, reflecting an EBITDA mar- serving communities, enter- gin of 41 percent. Net income for the quarter COVID-19 on the business” Zain Vice-Chairman and Group CEO Bader reached KD 45 million ($147 million), down 5 prises and governments” Zain Group Chairman Ahmed Al-Tahous Al-Kharafi percent Y-o-Y reflecting an Earnings Per Share of 10 fils ($0.03). Significantly, Zain Group net income grew operationally by 4 Kingdom thank all the government entities and regu- tered on expanding and monetizing our 4G, Saudi Arabia: For Q1 2021, Zain KSA percent Y-o-Y for Q1, 2021, when excluding 5. Zain KSA enters MoU with Mobily to latory authorities across our markets for FTTH and 5G networks creating vast and generated revenue of SAR 1.9 billion ($517 the one-time gain from the sale and lease unify telecom towers aiming to maximize effi- their proactivity and cooperation with the lucrative opportunities particularly related million), EBITDA for the period reached back of towers in Kuwait during Q1 2020. ciency and improve coverage throughout the telecom sector at large, in supporting oper- to Enterprise (B2B) services to government SAR 735 million ($196 million), reflecting an For Q1 2021, foreign currency translation Kingdom ators, mobile consumers and societies dur- and businesses of all sizes. At the same time, EBITDA margin of 38 percent. Net income was impacted mainly due to the currency 6. Saudi Central Bank (SAMA) grants Zain ing these times.” we continue to make significant progress in for the three months reached SAR 41 million devaluation in Sudan from 55 to 375 KSA fintech subsidiary, ‘Tamam’, first con- Bader Nasser Al-Kharafi, Zain Vice- raising the company to new heights and ($11 million). Having the Kingdom’s largest (SDG/USD) during end of February, and a 19 sumer micro-financing license in the region Chairman and Group CEO commented: “The maximizing value for shareholders through 5G network covering 50 cities, the opera- percent currency devaluation in Iraq from 7. Zain Iraq and Zain South Sudan launch Group’s resilient performance for the quar- our ‘4Sight’ strategy. We are evolving the tor’s data revenue represents 51 percent of 1,190 to 1,470 (IQD/USD), cost the Group high-speed 4G commercial services boosting ter reflects the reality of the unavoidable company’s core telecom business and build- total revenue and customers served stood at $177 million in revenue and $66 million in connectivity and socio-economic activity combination of both COVID-19’s ongoing ing on its many strengths to selectively 7.2 million. EBITDA. 8. Zain eSports successful rollout as one disruption on socio-economic activity and invest in growth verticals beyond standard Iraq: Zain Iraq’s Q1 2021 revenue reached Zain Group’s resilient results for Q1 2021 of the fastest growing eSports brands across the impact of currency devaluations on the mobile services.” $184 million and EBITDA amounted to $75 were achieved despite the widespread dis- Middle East attracting over 15,000 regis- business. Nevertheless, our culture of inno- million, reflecting an EBITDA margin of 41 ruption in economic and social activity tered players and 25 million views across var- vation has been invaluable at this time of Financial KPIs of key markets for Q1 percent. The operation reported a net profit caused by COVID-19, further compounded ious social media channels rapid change, and our business continuity Kuwait: Maintaining its market leader- of $12 million for Q1 2021. The operator by the recent and significant currency deval- 9. The Zain Group Application Program strategy has been executed impressively to ship, Zain Group’s flagship operation saw its served 16.2 million customers maintaining its uations in Iraq and Sudan. It should be noted Interface (API) platform continues to grow counter these factors. Management has customer base serve 2.5 million. It remains that the impact of the pandemic on the busi- market leading position. with 12 digital partnerships offering 21 attrac- proactively undertaken numerous decisive the Group’s most profitable operation with Sudan: For Q1 2021, Zain Sudan generat- ness was minimal during Q1 2020, given its tive services, resulting in substantial revenue digital transformation and cost optimization revenue for Q1 2021 reaching KD 79.4 mil- early stage of spread at the time, however in ed revenue of $92 million, with EBITDA with 5 million monthly transactions and total- initiatives while maintaining healthy cash lion ($263 million), EBITDA reaching KD 28 amounting to $42 million, reflecting an EBIT- Q1 2021 the impact was more profound. ing over 80 million transactions since its flows, and both Zain Iraq and Zain Sudan million ($93 million), representing an EBIT- DA margin of 46 percent. Net income for the launch have recently taken measures in dealing with DA margin of 35 percent. Net income period reached $18 million. Data revenue Key operational notes for Q1 2021 10. Zain was the highest ranked MEA currency devaluations by revamping prices reached KD 17 million ($56 million) for Q1 grew by 32 percent representing 29 percent 1. Zain Group consolidated data revenue operator in CDP global index with respect to and offering new attractive data monetiza- 2021, with data revenue growing by 2 per- reached $530 million, representing 42 per- its efforts to address climate change tion packages.” of total revenue, while the operator’s cus- cent and accounting for 39 percent of total tomer base reached a record 17.2 million, cent of the Group’s overall revenue 11. Zain Group publishes 10th annual sus- Al-Kharafi continued, “Given the limita- revenue. maintaining its market leadership. 2. Zain KSA completely settled the Group tainability report, titled ‘The Ten-Year tions on mobility, locally and travel abroad, During the quarter, the operator wit- Jordan: For Q1 2021, Zain Jordan rev- Shareholder Loan with an upstream of $553 Journey’ as well as an insightful report on we have continued to play a key role in nessed impressive growth in both 5G mobile enue reached $124 million, EBITDA million during Q1 2021 ‘Women in Technology- Bridging the Gender keeping people socially distanced while and broadband customers and resulting rev- 3. Throughout the quarter, Zain Group Gap in STEM Fields’ remaining connected and productive during enue capturing the largest 5G market share reached $56 million, reflecting an EBITDA invested $415 million in CAPEX (tangible and Commenting on the Q1 2021 results, the current learning and working from home in the country. Continual innovation and digi- margin of 45 percent, with net income intangible) reflecting 33 percent of total rev- Chairman of the Board of Directors of Zain environment. All Zain operations’ response to tal transformation saw the launch of a new reaching $20 million. Zain Jordan served enue, predominantly in expansion of Fiber- Group, Ahmed Al-Tahous said: “The Board these modified circumstances has been noth- and dynamic customer app offering many 3.6 million customers maintaining its market to-the-Home (FTTH) infrastructure; spectrum and Executive Management have been ing but exemplary. We implemented addi- new features, as well as enhancement of its leading position. fees; 4G upgrades and new network sites focused on minimizing the ongoing impact tional digitalization initiatives to better serve web and zBot chat service. From a B2B per- Bahrain: Zain Bahrain generated revenue across its markets, as well as ongoing 5G of COVID-19 and significant currency businesses, governments, and communities, spective, Zain Kuwait partnered with the of $44 million for Q1 2021. EBITDA for the rollouts in Kuwait, Saudi Arabia and Bahrain devaluations in Iraq and Sudan on the busi- granting them increased digital access to Ministry of Interior to revamp the Kuwait TV period amounted to $14 million, reflecting an 4. Kuwait witnessed impressive growth in ness. We are dedicated to ensuring our everyday life and essential medical and com- app to live stream 9 local video and 11 radio EBITDA margin of 33 percent. Net income 5G consumer and B2B customers, with Zain mobile networks are operating at optimal mercial services, aiming to lessen the impact channels. Also, the operator entered deals amounted to $4 million, with Data revenue Saudi Arabia expanding its 5G network to levels and providing meaningful connectivity of the pandemic on the societies we serve.” with Kuwait International Bank and Boubyan growing 4 percent to represent 45 percent over 50 cities covering all regions in the to the communities we serve. I would like to “Our operational focus has been cen- Bank for data related services. of total revenue. .