Mobile Telecommunications Company (ZAIN) investor relations material

Executive summary

• Group revenue for H1 2026 reached $3.71 billion (KD 1,137.3 million), up 5% year-over-year, with net income surging 73% to $717 million (KD 249.3 million) and EPS at 17 cents (51 fils).

• Active customer base grew 2% year-over-year to 51.9 million, with strong data, B2B, fintech, and digital revenue growth across key markets.

• Total assets grew to KD 6,027.8 million as of 30 June 2026.

• Major contributors to net income included Kuwait, Sudan, and KSA, with Zain Ventures recording notable gains of $411 million.

• Interim cash dividend of 17 fils per share was declared.

Financial highlights

• H1 2026 EBITDA rose 6% to $1.23 billion, maintaining a 33% margin; net income up 73% year-over-year to $717 million.

• Free cash flow margin stood at 14%, with total available liquidity of ~$3 billion.

• Dividend yield maintained at 7%, with an exceptional interim dividend of 17 fils per share declared for H1 2026.

• Share price increased 20% since January, reaching 621 fils and a market cap of $8.7 billion.

• Cash and cash equivalents at period end were KD 409.9 million, up from KD 217.1 million a year earlier.

Outlook and guidance

• FY 2026 revenue guidance revised to 10–15% growth, but actual H1 growth was 5%.

• Net income guidance was 40% growth, but actual H1 net income grew 73%.

• CAPEX/revenue ratio at 7%, below the guided 12–15%.

• Dividend policy extended through 2028, reaffirming a minimum annual cash dividend of 35 fils per share.

• Management expects to maintain operational continuity in Sudan despite ongoing conflict, with forecasts based on stable hostilities and manageable cost fluctuations.