Mobile Telecommunications Company (ZAIN) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 reached $4.71 billion (KD 1,445.5 million), up 2–2.2% YoY, with EBITDA at $1.65 billion (+0.4% YoY normalized) and net income at $442 million, but net profit in KD terms fell 37.6% to KD 160.9 million due to impairments and currency losses.

• Active customer base declined 9% YoY to 47.2 million, mainly due to challenges in Sudan.

• Strong top-line growth in Bahrain, Iraq, Kuwait, and KSA offset by significant operational and currency challenges in Sudan.

• Total comprehensive income dropped to KD 69.2 million from KD 262.5 million YoY, mainly due to foreign currency translation losses.

Financial highlights

• Group EBITDA margin stood at 35% for 9M 2024.

• EPS for 9M 2024 was 10 cents (31 fils), down from 42 fils YoY.

• Total CAPEX increased 24% YoY to $340 million (KD 104.1 million), with largest investments in KSA and Iraq.

• Net debt/EBITDA ratio at ~2.2x, among the lowest in the region; effective interest rate 6.66%.

• Interim cash dividend of 10 fils per share distributed in October 2024; dividend payout ratio remains in the 75% range.

Outlook and guidance

• Continued expansion of 5G and FTTH networks, with ongoing investments in digital transformation and infrastructure.

• Aggressive fintech and digital services growth planned, with new product launches and marketing campaigns.

• Management expects to maintain operational continuity in Sudan despite ongoing conflict, assuming no major escalation.

• The Group continues to monitor macroeconomic and geopolitical risks, particularly in Sudan and Iraq.