Zain Profits Jump on African Disposals

­Zain has reported that its second-quarter profit reached KWD 843.8 million (US$2.95 billion) compared with KWD 76.4 million a year earlier, thanks to the disposal of its African assets. The company said it made a first-half profit of $3.1 billion, which included $2.65 billion from the sale of assets in Africa.

For the first half of 2010, the Zain Group recorded consolidated revenues of KWD 672.6 million (US$ 2.33 billion), an increase of 10% compared to the same period of 2009.

It is important to note that with the conclusion of the sale of Zain Africa on June 8, 2010, the company received cash proceeds of US$7.868 billion of which proportionate capital gain profit is reflected in the H1, 2010 Net Income results.

"Despite the challenging global economic conditions and the competitive markets in which we operate, we are extremely pleased with the 10% revenue increase which is in line with our expectations as well as the record profit that is the largest in the company's history," commented Mr Asaad Al Banwan, Chairman of the Board of Directors of Zain. "With the sale of the Zain Africa assets now concluded, coupled with a healthy cash balance and reduced debt levels, the company is now well positioned to focus on, and further grow, its profitable Middle East operations. Better things are yet to come as we diligently strive to maximise shareholders' value in this new era."

Also commenting on the results, Zain Group CEO Mr Nabeel Bin Salamah said "With our Saudi Arabia operation achieving breakeven EBITDA and 7 million customers in only 22 months of operation, coupled with the impressive customer and revenue growth in our Sudan and Iraq operations, and Kuwait maintaining its market share despite the entry of a third operator, we are confident these impressive results will continue."