Zain Nigeria, the country’s operation of telecommunications giant Zain Group, Iraq and Sudan have accounted for 60 percent of 50 million subscribers on the group’s network worldwide.
According to Dr. Al-Barrak, chief executive officer, Zain group, the company has started to reap the rewards of its recent large investments particularly in Iraq, Nigeria and Sudan with these 3 countries now serving more than half of Zain’s 50 million customers, and we expect similar rewards when our operations in Saudi Arabia and Ghana commence commercial operations."
The group recorded consolidated revenues of US$3.488 billion, for the first half of 2008 which represents an increase of 26% compared to H1-2007. The company’s consolidated EBITDA increased by 20% for the same period to reach US$1.305 billion. Zain consolidated net profits reached US$551.5 million, an increase of 7% on H1-2007 profits.
Year on year customer growth across the two continents where Zain operates was 58% with the Zain Group serving 50.74 million managed active customers at 30 June, 2008.
Dr. Saad Al-Barrak, said that on the back of splendid results for 2007 and the first quarter of 2008, despite fierce competition in many markets, they were able to sustain excellent performance in the first half of 2008. "Highlighted by crossing the 50 million customer milestone, these impressive results reflect the exceptional operational efficiencies in a company that is investing heavily and rapidly expanding across two continents," he said.
Further to Zain Saudi Arabia’s listing on the Saudi Stock Exchange and a share price currently trading at double its initial offering, Zain has committed capital investments to date in networks exceeding US$1.5 billion in the Kingdom of Saudi Arabia. Currently the operation is testing the network with thousands of friendly users and Zain confirms that it will commence commercial operations by the end of August 2008. "We look keenly forward to launching our modern network and commercial offerings in the Kingdom, promising to offer the Saudi community world class telecom services. We are confident that our investment in the Kingdom will reap rewards for all our stakeholders." said Dr Al Barrak.
After its launch in Africa offering customers favorable rates for cross-border communications, on April 14th Zain introduced its borderless 'One Network’ mobile service to 14 million customers in four countries in the Middle East-Bahrain, Iraq, Jordan and Sudan. On this, Dr Al Barrak noted "One Network’s preferential offerings removing borders and high roaming charges have been warmly welcomed and we expect it will be the catalyst for further growth in customer acquisition as we soon plan to link the 2 continents." Saudi Arabia and Ghana will join One Network on launch of commercial services. Zain plans to roll-out One Network in all its operations, subject to regulatory approvals.
Zain also announces that the capital increase subscription period (as approved at the Annual General Assembly meeting on March 2008) will take place between August 17, 2008 and September 18, 2008. This capital increase will raise approximately US$4.4 billion. "Zain aspires to be a top-ten global telecom company by 2011 and increasing the company’s capital will provide the company with the liquidity necessary to continue its ambitious expansion strategy, while reducing the borrowing costs of the company’s operations and increasing shareholder value in the long term" concluded Dr Al Barrak.
