Zain results bulge from capital gains off Africa sale

Zain today announced its consolidated financial results for the half-year, to June 30, which the operator said reflected a healthy growth in several key performance indicators.

For the first half of 2010, the Zain Group recorded consolidated revenues of KWD 672.6 million (US$2.33 billion), an increase of 10 per cent year-on-year. The company’s consolidated EBITDA reached KWD 287.2 million. Net income was up 488 per cent to reach KWD 895.3 million, and included the capital gain of KWD 770.3 million from the sale of Zain Africa assets on June 8, 2010.

Upon the conclusion of the sale of Zain Africa, Zain Group received cash proceeds of US$7.868 billion, of which proportionate capital gain profit is reflected in the H110 net income results.

“The company has reengineered itself with a new and dynamic management team both at group and in several country operations,” said Zain Group CEO Nabeel Bin Salamah. “We are focused on further increasing our market leadership in all our Middle East operations.”

Zain provided mobile voice and data services to over 34.2 million active, proportionate customers as at end-June 2010 with a commercial presence in eight countries. Subscriber numbers were up 28 per cent year-on-year.