Industry Updates

Zain Group, a leading provider of innovative ICT and digital lifestyle communications operating in eight markets across the Middle East and Africa, announces its consolidated financial results for the first quarter ended March 31, 2025, with the customer base increasing 20% to reach 50.7 million customers.

Group Key Performance Indicators (KD and USD) for Q1’ 2025

Zain Group recorded impressive revenue growth of 15% to reach KD 536 million (USD 1.74 billion) for Q1’ 2025. EBITDA for the quarter jumped 15% to reach KD 171 million (USD 554 million), reflecting an EBITDA margin of 32%. Net income for the quarter soared 66% to reach KD 48.5 million (USD 157 million), reflecting an Earnings Per Share of 11 Fils (USD 0.04).

Key Operational Notes for Q1 2025

1. Zain Group revenue grew 15% YoY, driven by strong performance across main operations including Sudan (+112%), Iraq (+13%), Bahrain (+8%), Jordan (+7%), and KSA (+6%)
2. Group customer base soared 20% with continual restoration and expansion of network in Sudan, as well as strong growth in Iraq, KSA and other markets
3. Data revenue grew 6% to reach USD 633 million, representing 36% of the Group’s overall revenue
4. During the quarter, Zain Group invested USD 242 million in CAPEX, reflecting 14% of revenues
5. Kuwait, KSA, Bahrain, and Jordan continue to grow their 5G customer base
6. Fintech services (Bede in Kuwait and Bahrain; Tamam in KSA and Zain Cash) witnessed revenue growth of 30%, transaction value increased 25% to reach USD 1.7 billion
7. Consolidated enterprise revenue witnessed 16% growth as ZainTECH and B2B teams in key markets secure multiple deals with businesses and governments, ZainTECH revenue soared 184% YoY
8. Groupwide Digital services witnessed revenue growth of 2%, driven by increase in Kuwait and Sudan
9. Zain Omantel International (ZOI) wholesale carrier achieved exceptional revenue growth of 371% YoY
10. Customer base and revenue continue to grow for Zain’s digital operator, Yaqoot in KSA and Oodi in Iraq
11. Introduction of Global M2M offering to accelerate proliferation of connected devices across region
12. Zain brand valuation up 14.5% YoY, to reach a milestone of USD 3.5 billion, the highest in Kuwait

Mr. Osamah Al Furaih, Chairman of the Board said, “With the introduction of the ‘4WARD-Progress with Purpose’ five-year corporate strategy, the Board will work closely with Executive Management in driving continuity, acceleration, collaboration and digital innovation across all our operations to take Zain to new heights and increase shareholder value. We look forward to expanding our ESG initiatives in providing meaningful connectivity and continuing our positive relationships with regulatory bodies and all stakeholders as we implement ‘4WARD’ to the benefit of customers, communities, and government bodies we proudly serve.”

Mr. Bader Al-Kharafi, Zain Vice-Chairman and Group CEO commented, “It was a remarkable first quarter with solid operational performance and revenue growth across key markets, and this bodes well for rest of year as we expect this trajectory to continue, driving shareholder value. Our focus on investing in network upgrades, new technologies and monetizing our 5G and ICT services for both our individual and enterprise customers, coupled with accelerating the growth of several new business verticals, have positively impacted our financial metrics on all levels. So are our operational synergies, cost optimization and digital transformation initiatives in offering customers better services.”

“Our key operations in Kuwait, KSA, Jordan, and Bahrain performed well in line with expectations, despite strong competition and other local challenges. Notably, in Sudan the network restoration efforts have reconnected over 5.8 million customers leading to exceptional operational performance, despite the ongoing geo-political issues. The World Bank is optimistic about Sudan’s economic outlook, provided the current conflict eases, which supports our confidence for continued improvement in the coming quarters.”

“The success of our recent AGM, which achieved a distinct quorum of 79.2%, witnessed the approval of the Board’s recommendation to renew the minimum annual cash dividend policy of 35 fils per share for another three years, extending it through to 2028. This marks a clear reaffirmation of Zain’s long-term commitment to sustainable and consistent shareholder returns, as well as confidence in business’s prospects.”

“Our performance in this quarter was significantly boosted by the expanding impact of our growth verticals, ZOI wholesale, ZainTECH, Dizlee API entertainment platform, and Fintech services across our footprint which when combined delivered USD 191 million in revenue in the first quarter alone, representing a noteworthy 185% YoY growth from USD 67 million in Q1’2024, and now contributing 11% to Group total revenue.”

“As the leading 5G provider across the region in regard to footprint, our 5G customer base, both individuals and enterprises in Kuwait, KSA, Bahrain, and Jordan are truly benefiting from the appealing digital technologies and services we offer in enhancing their data experience, and this is driving both revenue and customer growth.”

“Our fintech's growth in revenue and customer base, witnessed increase in transaction volumes across Kuwait, KSA, Jordan, and Bahrain. Recently, in Sudan we launched the Bede brand, a key milestone in our regional rollout. In Kuwait, we look forward to receiving Central Bank approvals to expand our fintech offerings to cater for consumers and businesses. We will continue to foster Fintech, expecting this growth trajectory to continue.”

“Zain Omantel International (ZOI) exceptional performance was a result of major capacity deals in Data and Connectivity, a significant growth in voice traffic volumes, as well as expansion in partnerships and international agreements.”

“Likewise, ZainTECH’s revenue growth of 184% YoY also witnessed several important milestones this quarter. It launched a new Cybersecurity Governance, Risk, and Compliance (GRC) service, helping organizations stay compliant and secure. In Saudi Arabia, ZainTECH was granted a commercial license, allowing it to formalize its regional HQ there, and expand its presence and operations. The entity also joined the NVIDIA Partner Network as a Reseller, one of the few in the region, to bring advanced AI solutions to businesses across its markets.”

“The introduction of our Global M2M offering is a strategic move, capitalizing on our strategic footprint and superior connectivity to position Zain as the regional partner of choice. This service addresses the significant challenges faced by Original Equipment Manufacturers (OEMs) operating in or looking to operate in the region. By providing a unified solution that ensures compliance and simplifies connectivity across our extensive network, Zain is empowering the connection of global manufacturers to the Middle East. This will boost the pace of digital transformation of enterprises and governments, driving socio-economic growth across the region.”

Al-Kharafi concluded, “We are confident that the recently launched ‘4WARD-Progress with Purpose’ will unleash Zain’s full potential in transforming from a Telco to a purpose driven TechCo conglomerate providing ‘Better Lives and Lasting Connections’. ‘4WARD’ will provide the necessary impetus for Zain’s continued relevance and impact on shaping societies and providing meaningful connectivity and drive the Zain brand value to new heights.”

Financial KPIs of key markets for first quarter (Q1) ended March 31, 2025

Kuwait: Maintaining its market leadership, the flagship operation’s customer base stood at 2.6 million. Q1’ 2025 Revenue was slightly higher at KD 94 million (USD 303 million), EBITDA increased 2% to reach KD 32 million (USD 103 million), representing an EBITDA margin of 34%. Net income increased 2% to reach KD 18 million (USD 58 million), for Q1 2025, with data revenue accounting for 36% of total revenue. Zain Kuwait is currently preparing to deploy 5.5G services on its network as well as focusing on increasing its postpaid mobile customer base to enhance ARPU through appealing device and data offerings.

Saudi Arabia: For Q1’ 2025, revenue USD 718 million grew by 6%, EBITDA for the period increased 5% to reach USD 217 million, reflecting an EBITDA margin of 30%. Net income for the quarter soared 40% to reach USD 25 million. The operator’s data revenue grew by 2%, representing 39% of total revenue, and active customers increased 3% to stand at 9 million. The operator witnessed continued growth in 5G and B2B revenue, with Yaqoot - Zain KSA’s digital arm witnessing 1% growth in revenue, and Tamam, the consumer microfinance arm, witnessing revenue growth of 31%, all of which contributed towards the increase in top-line.

Iraq: For Q1’ 2025, revenue grew 13% to reach USD 286 million and EBITDA increased 13% to reach USD 105 million, reflecting an EBITDA margin of 37%. Net income for the quarter soared 73% to reach USD 26 million. Customer base increased 11% to 20.7 million, reflecting a market leading position, driven by the investment in Tower expansion and monetizing new B2C and B2B products and services.

Sudan: For Q1 2025, Zain Sudan showed strong signs of recovery and growth despite the ongoing challenges in the country. Revenue for the quarter soared 112% to reach USD 107 million, with EBITDA reaching USD 61 million, up from USD 12 million last year, an increase of 423%, reflecting an EBITDA margin of 57%. Net income soared 138% to reach USD 53 million. The operation’s exceptional growth across all KPIs was driven by the successful restoration of 1,564 sites, including 219 sites in newly liberated areas of Khartoum. This network recovery saw the customer base more than double, jumping 110% YoY from 5.2 million to 11 million in Q1 2025.

Jordan: For Q1’ 2025, Zain Jordan revenue grew 7% to reach USD 141 million, EBITDA slightly increased to reach USD 55 million, reflecting an EBITDA margin of 39%, with net income increased 8% to reach USD 18 million. Data revenue grew 10% on the back of its continually expanding 5G network, representing 53% of total revenue. Customer base increased by 5% to stand at 4.1 million, maintaining its leading position.

Bahrain: For Q1’ 2025, Zain Bahrain revenue grew 8% to reach USD 56 million, an increase of 8%, EBITDA reached USD 14 million, reflecting an EBITDA margin of 26%. Net income increased by 10% to reach USD 3.1 million, with data revenue growing 4% to represent 44% of total revenue. ENDS

Source: Zain Press Release