Zain Profits Dip Slightly As Currency Fluctuations Hit Bottom Line
Published on: 27th Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Zain Group has announced its fourth quarter financial results which were broadly flat with a minimal drop in profits and a mild rise in revenues.
For the fourth quarter of 2013, Zain Group recorded consolidated revenues of USD1.12 billion up 2% when compared to the same period in 2012.
EBITDA for the quarter reached USD 492 million, reflecting a margin of 44% and an increase of 3% to the same period in 2012. Net proft for the quarter reached USD180 million, which it said was "a stable result compared to the same period of 2012", although in fact it was ever so slight down on the previous year.
The company ended the year with a group wide growth of 3.4 million new customers, taking its total customer base to 46.1 million.
The company also said that investments in 3G and LTE upgrades paying off as data revenues (excluding SMS and VAS) increased by a healthy 25%, forming 14% of total Group revenues.
Chairman of the Board of Directors of Zain Group, Mr. Asaad Al Banwan said: "2013 has been a challenging year and we continue to perform reasonably well if one considers our financial results in local currency terms."
"The company's fourth quarter financial results were also affected by currency translation impact, reducing revenues by USD 31.5 million and EBITDA by USD 13.8 million."