Zain records KD235.09 net profits
Published January 14th, 2008
For the nine months ended September 30, 2007, Mobile Telecommunications Co. (Zain) recorded net profits of KD235.09 million as compared to KD212.79 million in 9M06, up 10.5 per cent.
EPS stood at 127 fils as against 115 fils in the prior year period. Consolidated revenues soared by 34.0 per cent to KD1,224.08 million year-on-year, while cost of sales rose to KD265.95 million, an upsurge of 36.2 per cent.
With the financial markets making smart recoveries in 2007, the company’s investment income soared a massive 494.59 per cent to KD19.79 million from KD3.33 million in 9M06. However, on the other hand, finance costs escalated 46.19 per cent to KD88.42 million.
As on September 30, 2007, Zain’s customer base reached 36.50 million, soaring 49.0 per cent compared to the same period a year ago.
This growth was driven by its African operations that accounted for 68.0 per cent of the company’s customer base.
Zain’s annualised RoE and RoA showed a marginal decline to 21.0 per cent and 7.6 per cent from 22.4 per cent and 8.7 per cent, respectively, recorded in the earlier year period. On December 04, 2007, the company’s board recommended a cash dividend of 90 fils per share and a 50 per cent bonus issue for the fiscal year ending December 2007. The board also proposed raising the company’s capital by 75 per cent by issuing shares at a par value of 100 fils, with an issue premium of 750 fils.
Zain was established in Kuwait as Mobile Telecommunications Co. (MTC) in 1983.
The region’s first mobile operator has today grown into the largest Kuwaiti company in terms of market capitalisation. Since the initiation of its profitable expansion strategy “3×3x3″ in 2003, Zain has grown exponentially becoming the fourth largest telecommunications company in the world in terms of geographic presence, with footprints in 22 countries spread across the Middle East and the African continent. The company is involved in mobile telecom; and the purchase, delivery, installation, management and maintenance of mobile phones and paging systems.
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