Mobile Telecommunications Company (ZAIN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 6% YoY to $1.86 billion (KD 569.4 million), with net income up 51% to $260 million (KD 93.3 million), and EBITDA up 6% to $594 million.

• Customer base grew 1% YoY to 51.2 million, with strong data, B2B, and fintech revenue growth across key markets.

• Earnings per share increased to 18 fils from 12 fils YoY.

• Strategic investments by the ventures arm delivered notable gains, and the dividend policy was extended to 2028.

• Total comprehensive income for the period was KD 67.2 million, nearly flat versus Q1 2025.

Financial highlights

• Revenue: $1.86 billion (+6% YoY); EBITDA: $594 million (+6% YoY, 32% margin); Net income: $260 million (+51% YoY); EPS: 6.18 cents/18 fils.

• Data revenue up 18% YoY, B2B revenue up 9% YoY, fintech revenue up 28% YoY.

• Zain Ventures recorded $123 million in gains; investment income more than doubled to KD 37.7 million.

• Cash and cash equivalents at period end were KD 303.9 million, up from KD 193.2 million a year ago.

• Net cash from operating activities increased to KD 137.1 million from KD 116.2 million YoY.

Outlook and guidance

• FY 2026 revenue growth guidance revised to 10–15%, with net income growth guidance at 15%.

• Actual Q1 2026 revenue growth was 6%, net income growth 51%, and CAPEX/revenue at 7% (below guidance of 12–15%).

• Dividend policy extended to 2028, reaffirming a minimum annual payout of 35 fils per share.

• Management expects to continue as a going concern, with adequate resources for at least 12 months.

• Ongoing monitoring of Sudan operations due to political instability, but forecasts assume no significant escalation.