Zain jumps its half-year net profit by 73% to $717 million

Zain Group (listed on the Kuwait Stock Exchange under the ticker symbol: ZAIN) 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.

The company, a leader in technological innovation in Middle Eastern and African markets, revealed that its financial indicators for the six-month period were supported by strong growth levels. 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 reported 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%.

Notably, 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 stated 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, 2026.

The quarterly financial results for the second quarter showed consolidated revenues growing by 5% 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 data revenue growth, continuous expansion of 5G services, an increase in the customer base, alongside robust growth in the corporate, projects, and enterprise sector revenues. New growth sectors achieved strong growth rates, supported by sustained efforts to enhance operational efficiency and maximize returns on 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 the leveraging of investment opportunities in the region. The Group has successfully strengthened its role as a driver of digital transformation and a supporter of economic growth.”

She added, “The Board works closely with the executive management to capitalize on opportunities presented by digital transformations to lay the foundations for the Group’s future growth, continue investing in strategic opportunities that support business expansion, and maximize shareholder equity.”

Al-Jassim added, “The group is striving to build an integrated digital ecosystem better equipped to meet future challenges, grounded in its firm commitment to governance principles, adoption of best sustainability practices, and continuous development of its institutional capabilities, thereby strengthening its regional standing.”

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

He clarified, “Digital infrastructure has today become a fundamental pillar of economic competitiveness and the ability to attract investments and stimulate growth. In light of this pivotal role, Zain continues to invest in the development of its networks and technical platforms, enhancing its readiness to seize future opportunities and meet the growing demand for advanced digital services. In this context, the group’s capital expenditures for the first half of 2026 amounted to $252 million, representing 7% of revenues.”

Al-Kharafi noted that these investments are part of a broader vision to reshape the group’s business model, emphasizing that Zain has reached an advanced stage in its digital transformation journey, the fruits of which are clearly beginning to show in financial and operational performance. This is achieved through building a more diversified business portfolio capable of keeping pace with rapid market changes, thereby supporting sustainable growth and reinforcing Zain’s position as a regional “technology conglomerate.”

Al-Kharafi pointed out that the transformation path undertaken by the group is now translating into tangible financial results. Disciplined implementation of the strategy has strengthened 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 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 retain its customer base and drive growth in data and business revenues despite intense market competition. Zain’s operations in Jordan and Bahrain also delivered strong results. Meanwhile, financial performance in Sudan was affected by a 40% currency devaluation, despite continued strong operational performance in local currency and the ongoing implementation of network restoration and expansion plans.”

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

It is worth noting that 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 significant progress during this period, with their revenues increasing by 36% to reach $479 million, contributing 13% to the Group’s total revenues.” He explained 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 currently stands out 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 information technology 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 rising 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.

ZainTECH enjoys promising growth prospects, supported by the accelerating pace of digitalization in the region and increased spending on digital infrastructure and advanced technological solutions, which will further enhance its role as a key contributor to diversifying the Group’s revenue sources in the future.

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

This performance was bolstered 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 in 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 fintech sector continued to build strong momentum during this period, with its customer base growing by 35% across the Group’s various markets. This growth contributed to higher revenues and increased volumes of digital financial transactions, reflecting the Group’s successful strategy to expand its digital financial services through specialized platforms, including its brands “Bee” in Kuwait, Bahrain, and Sudan; “Tamam” in Saudi Arabia; and “Zain Cash” in Jordan and Iraq.

Revenues from fintech services surged by 29%, as these activities benefit from significant growth opportunities driven by rising adoption rates of e-wallets, digital payment and transfer services, and innovative financing solutions.

In line with the Group’s commitment to building sustainable value sources for shareholders, Zain Ventures continued to execute strategic, high-impact investments and realize 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.

Notably, Zain Ventures’ investment portfolio includes high-growth global companies such as SpaceX, xAI, and Revolut. Zain believes that this investment direction will continue to support financial performance and enhance long-term returns for shareholders.

Zain Kuwait maintained operational resilience during the second quarter of 2026, with its customer base reaching 2.6 million customers. Revenues amounted to $294 million, while 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 business 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 performance in the second quarter of 2026, 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 jumped by 60% to $54 million (up 84% to $108 million for the first half of 2026), supported by higher Universal Service Fund (USF) revenues.

The performance was underpinned by a more diversified revenue base, improved operational efficiency, and continued growth in digital and corporate services. The company enhanced its digital capabilities by launching the AI Center of Excellence and the Smart Hajj Platform, alongside expanding cybersecurity offerings and strategic partnerships across key sectors.

Zain Iraq recorded revenues of $334 million in the second quarter of 2026, representing a 7% increase ($660 million for the first half of 2026, up 10% compared to the same period in 2025). This growth 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 associated with the macroeconomic environment.

EBITDA grew by 4% to $122 million in the second quarter (and by 5% to $232 million during the first half of 2026), while net profit rose 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 increased by 9% to 12.9 million, despite the company operating within a highly complex operational environment. An additional 40% decline in the 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 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 stood at $59 million in the second quarter and $115 million during the first half of the year. Data services revenues also rose by 38%, accounting for 37% of total revenues in the first half of 2026.

Zain Jordan delivered strong performance in the second quarter, recording growth across both financial and operational metrics. Revenues increased by 4% to $154 million, while EBITDA rose by 5% to $60 million, achieving an EBITDA margin of 39%. Net profit grew by 2% to $21 million (and by 1% to $40 million during the first half of 2026). Data revenues grew by 11%, supported by the continuous expansion of the 5G network, now representing 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 stable performance during the second quarter of 2026, with revenues reaching $52 million. EBITDA increased by 2% to $15 million, achieving an EBITDA margin of 30%. Net profit amounted to $3.7 million, up 1.4% (and rose by 1.2% to $6.8 million during the first half of 2026).