Mobile Telecommunications Company (ZAIN) Q2 2025 earnings summary

Executive summary

• Group revenue reached $3.51 billion (KD 1,077.7 million) in H1 2025, up 14% year-over-year, with net income rising 49% to $395 million (KD 121.2 million).

• Active customer base grew 7% year-over-year to 50.9 million, with strong growth across digital, fintech, and B2B segments.

• All major operating companies contributed to growth, with standout performances in Sudan (revenue +97% YoY), Iraq (+16% YoY), and KSA (+5% YoY).

• Strategic investments, cost optimization, and digital transformation initiatives drove profitability and operational efficiency.

• The group operates in Kuwait and seven other countries, maintaining a strong regional presence.

Financial highlights

• H1 2025 revenue: $3.51 billion (KD 1,077.7 million, +14% YoY); EBITDA: $1.16 billion (+10% YoY, margin 33%); net income: $395 million (KD 121.2 million, +49% YoY).

• EPS for H1 2025 reached 5 cents (28 fils), up from 3.5 cents (19 fils) in H1 2024.

• Free cash flow margin at 15%, CFO margin at 27%; total available liquidity at $2.4 billion.

• Net debt/EBITDA at 2.2x; net debt/equity at 0.78x; average effective interest rate on borrowings was 5.76%.

• Cash and cash equivalents at period end were KD 215.9 million, up from KD 210.0 million a year earlier.

Outlook and guidance

• FY 2025 revenue growth guidance revised to +10% to +15%; H1 2025 achieved +14%.

• Normalized net income growth guidance set at +20% to +25%; H1 2025 delivered +49%.

• Capex/revenue expected at 15%-17%; H1 2025 at 11%.

• Management expects adequate resources to continue operations in Sudan despite ongoing conflict, with forecasts assuming no significant escalation.

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