Zain posts strong results

Zain this week released its annual financial results for the year ending 31 December 2008, with strong growth numbers in total revenue, net profit and its total customer base.

Zane has increased its mobile phone subscriber base by 50% to over 63 million subscribers in 22 countries throughout the Middle East and Africa. This includes over 6 million subscribers in Nigeria, one of the most hotly contested territories in Africa for mobile service providers.

Consolidated revenues for the company saw a 26% increase to US$7.44 billion, while net profits rose 6% to US$1.2 billion, representing US$0.33 earnings per share.

The company was also able to decrease financial liability by US$1.8 billion, and refocus its strategy to strategic acquisitions going forward. According to Dr Saad Al Barrak, CEO of Zain: “Going forward in the current economic climate, Zain will adapt its strategy where it makes commercial sense and where it is economically viable to take up an attractive opportunity. This includes share swapping with and acquiring minority stake deals in other telecom operations.”

Zain also plans to enter the Palistinian market, as well as at least one other regional market, in the current financial year.

Trading at lower-than-usual Price Earnings ratios, the company share price rose marginally on the back of the financial results announcement. According to Dr Al Barrak, Zain – which is wholly owned by Mobile Telecommunications Company KSC, listed on the Kuwait Stock Exchange – represents good value to investors, as telecom shares are relatively undervalued in the current economic climate.