Mobile Telecommunications operator, Zain has reported that its full year revenues jumped 26% to US$7.44 billion despite currency fluctuations. Net profit was up 6% to US$1.2 billion, while the customer base increased 50% to 63.5 million.
Dr Saad Al Barrak, chief executive officer of Zain, expressed delight at the 2008 financial results release the first time under the umbrella of one brand. “Following the successful rebranding of all our Africa operations to Zain, and the successful launch of commercial operations in the Kingdom of Saudi Arabia and Ghana, we firmly believe that the Zain brand will act as a catalyst and propel the company to our 2011 target of being a top-ten global operator,” he said.
He added, that during the year Zain committed over US$ 3 billion in network upgrades and expansion primarily in vast and viable markets such as Ghana, Iraq, Nigeria, Saudi Arabia and Sudan all resulting in robust customer acquisition and revenues. These markets will continue to grow and we expect to further reap further rewards in the years ahead especially since they are all part of our ground-breaking and customer alluring ‘One Network’.”
Dr Al Barrak noted that overall, due to its massive network investment across all operations; they expect and are targeting a 30% increase on many of the company’s financial indicators in 2009.
Defending the Zain share price that sees it trading at historical low Price Earnings multiples, amid the negative sentiment that is gripping world stock markets and seeing billions wiped off valuations, including telecom groups to the range of 30 to 70%, Dr Al Barrak said, “We believe this in unjustifiable in Zain’s case as the debt levels of the Group fall within a reasonable range when compared to many other international mobile groups. The Group has sound reserves, an excellent track record of wise borrowing and repayment, as well as diverse funding sources to support its strategic expansionary plans. Today’s stock price represents excellent value for investors.”