Zain wins 220 million dinars in the first half, up 73%

Zain Group recorded exceptional growth in its net profit for the first six months of the current fiscal year 2026, with net profit surging by 73% to reach 220 million dinars ($717 million), compared to the same period in 2025, translating to an earnings per share (EPS) of 51 fils.

Zain revealed that its financial indicators for the six-month period were supported by strong growth levels, as revenues rose by 5% to reach 1.14 billion dinars ($3.71 billion), marking the highest level in over 15 years compared to the same period in 2025.

The group disclosed that EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 6% to reach 378 million dinars ($1.23 billion), with an EBITDA margin of 33%.

The net profit for the first half of 2026 included gains of $411 million from strategic investments executed by Zain Ventures, which manages and leads the group’s investment portfolio.

The group reported that data services revenues increased by 15% to reach $1.5 billion, accounting for 40% of total consolidated revenues. The customer base grew by 2% to reach 51.9 million customers, compared to the same period in 2025.

Based on the record financial results achieved by the group during the first half of the year, the Zain Group Board of Directors approved an exceptional interim cash dividend of 17 fils per share, a move reflecting the strength of its financial performance and the group’s commitment to sharing the fruits of growth with shareholders. The cash dividend distribution is set to begin on October 6.

The quarterly financial results for the second quarter showed a 5% increase in consolidated revenues to reach 568 million dinars ($1.85 billion). EBITDA rose by 5% to 196 million dinars ($639 million), with an EBITDA margin of 35%. Meanwhile, quarterly net profit surged by 90% to reach 140 million dinars ($457 million), with an EPS of 32 fils. (The net profit for the second quarter of 2026 includes gains of $288 million from strategic investments executed by Zain Ventures).

The group attributed the growth in its financial indicators during the first half of 2026 to strong operational performance, driven by the growth in data revenues, continuous expansion of 5G services, an increase in the customer base, alongside robust growth in the corporate, enterprise, and business sector revenues. New growth sectors achieved strong growth rates, alongside the success of its ongoing efforts to enhance operational efficiency and maximize returns on its strategic investments.

Nour Al-Jassim, Chairperson of the Board of Directors at Zain Group, stated: “The financial results were driven by the diversification of operational activities and capitalizing on investment opportunities in the region, where the group has succeeded in strengthening its role as a driver of digital transformation and a supporter of economic growth.”

Al-Jassim clarified, “The Board works closely with the executive management to leverage opportunities presented by digital transformations to establish the pillars of the group’s future growth, and to continue investing in strategic opportunities that support business expansion and maximize shareholder equity.”

She added, “The group aims to build a more integrated digital ecosystem capable of keeping pace with the future, based on its firm commitment to governance principles, adoption of best sustainability practices, and continuous development of its institutional capabilities, thereby enhancing its regional standing.”

For his part, Badr Nasser Al-Kharafi, Vice Chairman and Chief Executive Officer of the Zain Group, stated: “These financial results come against the backdrop of a regional environment characterized by exceptional geopolitical challenges, whose impacts have affected business activities, supply chains, and commercial and economic operations. This has necessitated that institutions strengthen their operational capabilities and raise their levels of readiness and resilience.”

Al-Kharafi clarified: “Digital infrastructure has today become one of the fundamental pillars of economic competitiveness, the ability to attract investments, and the capacity to stimulate growth. In light of this pivotal role, Zain continues to invest in the development of its networks and technical platforms, thereby enhancing its readiness to seize future opportunities and meet the growing demand for advanced digital services. In this context, the Group’s capital expenditures during the first half of this year amounted to $252 million, representing 7% of revenues.”

He noted that these investments are part of a broader vision to reshape the Group’s business model, emphasizing that Zain has advanced significantly in its digital transformation journey, the fruits of which are now clearly visible in financial and operational performance. This has been achieved by building a more diversified business portfolio capable of keeping pace with rapid market changes, thereby supporting sustainable growth and strengthening Zain’s position as a regional “technology conglomerate.”

Al-Kharafi pointed out that the transformation process undertaken by the Group is now translating into tangible financial results. The disciplined implementation of the strategy has reinforced the upward trajectory of revenues, with consolidated revenues rising by 5% to reach KD 1.14 billion. Data services continued to play a key role in driving the Group’s financial performance, with revenues from this vital sector increasing by 15%, thanks to the growing demand for data.

He added: “The Group continues to reap the benefits of its long-term investments in networks and digital infrastructure across key markets. Zain Saudi Arabia recorded exceptional growth in net profit of 84%, while Zain Iraq achieved growth of 7%. In Kuwait, continuous investments in the 5G Advanced network enabled the company to maintain its customer base and enhance data and business revenues despite strong market competition. Zain’s operations in Jordan and Bahrain also delivered strong results. Meanwhile, financial performance in Sudan was affected by a 40% devaluation of the local currency, despite continued strong operational performance in local currency and the ongoing plans for network restoration and expansion.”

In the context of continuing the Zain Group’s expansion strategy and strengthening its regional presence, Al-Kharafi stated: “The Group’s entry into the Syrian market represents one of the most important strategic milestones in its journey in recent years. Zain won a license to operate a new mobile telecommunications network in Syria for a period of 20 years (+5 years extension), following a competitive process that underwent technical and financial evaluation, during which the Group submitted the best bid according to bidding criteria.”

He emphasized: “This step reflects Zain’s confidence in the prospects of economic recovery and future growth in Syria, and will further strengthen its presence in the Mashreq region. With preparations underway to launch the Zain brand in Syria during the first quarter of 2027, the Group looks forward to capitalizing on regional integration opportunities, enhancing digital connectivity, and delivering cross-border services and solutions based on the Group’s extensive technical capabilities.”

The Syrian market is characterized by a young population base and growing demand for high-quality telecommunications and data services, both among individuals and the business sector, amid gradual improvements in economic and social indicators.

Al-Kharafi also highlighted the growing performance of the Group’s new growth engines (ZOI, ZainTECH, and the financial technology sector), which have become one of the key pillars of its long-term strategy. He stated: “These sectors have made remarkable progress during this period, with their revenues rising by 36% to reach $479 million, contributing 13% to the Group’s total revenues.” He noted that this strong performance reflects Zain’s success in implementing its strategy to build a more diversified business model and solidifying its position as an integrated digital operator.

ZainTECH stands out today as one of the Group’s new strategic growth pillars, amid Zain’s rapid transformation toward building an integrated digital business ecosystem that goes beyond traditional telecommunications services. The company has established itself as a leading regional provider of digital solutions and IT services, becoming one of the most important drivers of the Group’s future growth and expansion. Its operations recorded a 24% revenue growth over the six-month period.

This strong performance was driven by increasing demand for digital transformation services, cloud computing, cybersecurity, artificial intelligence, and smart city solutions. Additionally, the company, together with the business sector teams across the Group’s markets, contributed to a 13% increase in corporate, projects, and business segment revenues by winning landmark contracts and projects with major institutions and government entities.

Zain International Telecommunications Company (ZOI) continues to deliver exceptional financial and operational performance. Despite ongoing regional disruptions, ZOI achieved outstanding results, with revenues jumping by 45% to reach approximately $287 million.

This performance was supported by strong demand for regional and international connectivity services, alongside continuous progress in ZOI’s strategic infrastructure program. Key developments included further advancement in submarine cable corridor projects, robust execution of the Saudi backbone network exceeding 8,000 kilometers, progress on data center projects in Dubai and Dammam, and the development of new opportunities in satellite communications, including direct-to-device services and consumer-oriented services in partnership with SpaceX. These initiatives continue to reinforce ZOI’s position as a leading regional platform for wholesale connectivity services.

The financial technology sector continued to maintain strong momentum during this period, with the customer base growing by 35% across the Group’s various markets. This contributed to increased revenues and the volume of digital financial transactions. This growth reflects the Group’s successful strategy to expand its digital financial services through specialized platforms, including its brand “Bee’id” in Kuwait, Bahrain, and Sudan; “Tamam” in Saudi Arabia; and “Zain Cash” in Jordan and Iraq.

In line with the Group’s commitment to building sustainable value for shareholders, Zain Ventures continued to execute strategic, high-quality investments and deliver tangible gains during the period, leveraging its investments in venture capital funds and the global startup ecosystem. Zain Ventures’ strategic investments recorded notable gains of $411 million over the six-month period.

Zain Kuwait maintained operational resilience during the second quarter of the current year, with its customer base reaching 2.6 million customers. Revenues amounted to $294 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 2.4% to $113 million, achieving an EBITDA margin of 39%. Net profit stood at $36 million ($116 million for the first half of 2026).

This performance was supported by strong growth in broadband services, improved returns from prepaid services, sustained momentum in the corporate and enterprise sector, and further expansion of the 5G network. Data revenues remained a key driver of the company’s growth, increasing by 8% to account for 41% of total revenues.

Zain Saudi Arabia delivered strong results in the second quarter of the current year, with its customer base growing by 8% to reach 8.9 million customers. The company recorded revenues of $707 million, while EBITDA increased by 3% to $233 million, with an EBITDA margin of 33%. Net profit surged by 60% to $54 million (up 84% to $108 million for the first half of the current year), supported by higher Universal Service Fund (USF) revenues.

Zain Iraq reported revenues of $334 million in the second quarter of 2026, representing a 7% increase ($660 million for the first half of the current year, up 10% compared to the same period in 2025). This was driven by the strong execution of the company’s strategy, continued network expansion in key areas, and significant contributions from Horizon and NextGen, despite ongoing regional instability and challenges related to the macroeconomic environment.

EBITDA grew by 4% to $122 million in the second quarter (and by 5% to $232 million for the first half of the current year). Net profit increased by 3% to $41 million in the second quarter and by 7% to $71 million over the six-month period. The customer base reached 20.4 million, reinforcing Zain Iraq’s continued market leadership.

Zain Sudan’s customer base grew by 9% to 12.9 million customers, despite the company continuing to operate in a highly complex operational environment.

An additional 40% decline in currency value, with the exchange rate moving from 2,140 Sudanese pounds per US dollar in June 2025 to 3,550 pounds in June 2026, significantly impacted the reported financial results.

After accounting for the impact of applying IAS 29, second-quarter revenues declined by 7% to $126 million, while EBITDA fell by 13% to $66 million. Net profit was $59 million in the second quarter and $115 million for the first half of the current year. Data service revenues increased by 8%, accounting for 7% of total revenues in the first half of the current year.

Zain Jordan delivered a strong performance in the second quarter, recording growth on both financial and operational fronts. Revenues rose by 4% to reach $154 million, while EBITDA increased by 5% to $60 million, with an EBITDA margin of 39%. Net profit grew by 2% to $21 million (compared to a 1% increase to $40 million in the first half of the year). Data revenues grew by 11%, supported by the continuous expansion of the 5G network, and now account for 57% of total revenues.

This performance was driven by growth in individual services, the corporate and enterprise sector, alongside the ongoing expansion of Fiber-to-the-Home (FTTH) services in key areas.

Zain Bahrain maintained a stable performance during the second quarter of this year, with revenues reaching $52 million. EBITDA rose by 2% to $15 million, achieving an EBITDA margin of 30%. Net profit stood at $3.7 million, up 1.4% (compared to a 1.2% increase to $6.8 million in the first half of the year).