Kuwait’s Zain Group Reports 6% Rise in Annual Net Profit Driven by Cost Optimization and Digital Innovation

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Zain Group’s net profit for 2022 increased by 6% YoY to $640m (KWD196m), driven by cost optimisation, 5G network upgrades, digital innovation, tower sales, and data monetisation initiatives. The telecom giant’s consolidated revenue increased by 14% to KWD1.7bn in 2022, while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 7% to KWD673m.

The board of directors proposed a cash dividend of 25 fils per share for H2 2022, which brings the total dividend to 35 fils per share for the year, with a payout ratio of 78%. Zain’s customer base grew by 7% to 52.4 million in 2022, and the company spent $936m in capital expenditure, mainly on 4G and 5G rollouts, expansion of fiber-to-home infrastructure, and spectrum license fees. Zain is seeking to execute its 4Sight strategy this year, focusing on core telecom business while diversifying into new lucrative business verticals in the Internet of Things, digital infrastructure, fintech, and digital services arenas. Zain’s fintech arm registered a 64% increase in customers to one million in 2022, while its revenues shot up by 241% YoY and processed transactions valued at $3.6bn.