Mobile Telecommunications Company (ZAIN) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong growth across all key financial and operational metrics, with revenue reaching KD 536.2 million (up 15% YoY) and net profit rising to KD 56.3 million.

• Strategic focus on digital transformation, fintech, and B2B segments drove performance, supported by investments in 5G, digital infrastructure, and sustainability initiatives.

• Dividend policy extended to 2028, reaffirming commitment to shareholder returns.

• The group operates in Kuwait and seven other countries, with significant contributions from KSA, Iraq, and Jordan.

• Total comprehensive income for the period was KD 55.6 million, with KD 47.5 million attributable to shareholders.

Financial highlights

• Revenue reached $1.74 billion (KD 536.2 million), up 15% year-over-year; EBITDA rose 15% to $554 million, maintaining a 32% margin.

• Net income surged 66% year-over-year to $157 million, with EPS at 4 cents or 11 fils.

• Customer base grew 20% year-over-year to 50.7 million.

• Free cash flow and liquidity remain robust, supporting ongoing dividend payouts and growth plans.

• Investment income surged to KD 16.1 million from KD 3.0 million year-over-year.

Outlook and guidance

• FY 2025 guidance targets 10–15% revenue growth and 12–18% normalized net income growth; Q1 results are tracking at the upper end of these ranges.

• CAPEX/revenue ratio expected at 15–17%, with Q1 at 14%.

• Management expects adequate resources to continue operations in Sudan despite ongoing conflict, with forecasts based on stable hostilities and operational continuity.

• The group anticipates compliance with loan covenants and ongoing capital investments.