Zain's net profit touches $1 billion

Zain Group (listed on the Kuwait Stock Exchange under the ticker: ZAIN) raised its net profit for the nine-month period by 59% to reach 304 million dinars ($990 million), with earnings per share of 70 fils. Consolidated revenues grew by 4% to reach 1.8 billion dinars ($5.71 billion) – the highest level recorded by the Group in the last 17 years – driven by strong operational performance in its key markets, continuous growth in strategic growth sectors, and its digital platforms. The Group revealed that earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 4% to reach 587 million dinars ($1.91 billion), with an EBITDA margin of 34%. The Group expanded its customer base by 3% to approximately 53 million customers, driven by the restoration of the network in Sudan and the expansion of Zain Iraq’s operations. Meanwhile, data revenues rose by 11% to reach $2.3 billion, accounting for 39% of total revenues.

Notably, the nine-month net profit includes gains of $501 million achieved by strategic investments executed by Zain Ventures, the arm managing the Group’s investment portfolio.

Regarding quarterly results for the third quarter, the Group recorded a 2% growth in consolidated revenues to reach 615 million dinars ($2 billion), and EBITDA increased by 1% to reach 209 million dinars ($681 million), with an EBITDA margin of 34%. Meanwhile, quarterly net profit jumped by 30% to reach 84 million dinars ($273 million), with earnings per share of 19 fils.

The Group attributed these record results to the continued success in implementing its strategy, maximizing returns from its investments in network infrastructure, digital assets, and telecommunications and IT services, alongside disciplined expansion in high-growth strategic investments within the global innovation ecosystem. It noted that growth in financial indicators was driven by continuous improvement in operational efficiency and cost rationalization, a 12% growth in business sector revenues, and strong performance from new growth sectors, which recorded revenues of $759 million, representing a 30% annual growth. This enhanced income source diversification and increased the contribution of digital initiatives to total revenues, despite ongoing geopolitical challenges in some regional markets and the impact of currency devaluation in Sudan.

Noura Al-Jasim, Chairperson of Zain Group’s Board of Directors, stated: “The record financial results achieved by the Group during this period confirm the resilience and diversification of its business model, and its ability to achieve balanced growth despite the changes and challenges facing the region. This is thanks to its wide geographical presence, diversified revenue sources, and the growing role of new growth drivers and the investment portfolio in supporting performance and maximizing value.”

She added: “These results reflect the success of the Group’s strategic vision in building a more capable institution to keep pace with rapid economic and technological transformations, and to enhance its readiness to capitalize on opportunities offered by the digital sector. They also confirm the soundness of its approach in developing a balanced business model that combines operational growth with strategic investment, thereby solidifying the foundations for sustainable growth and enhancing long-term shareholder value.”

Al-Jassim clarified that the gains achieved by the group during this period provide it with a solid foundation to transition to a new stage of growth, enhance its position as a key player in building the digital economy, and deepen its role in supporting the development process and empowering communities, through expanding technological partnerships and strengthening cooperation frameworks with regulatory authorities and various stakeholders.

Bader Nasser Al-Kharafi, Vice Chairman and Chief Executive Officer of Zain Group, said: “The exceptional financial results achieved by the group during this period, which are the highest in 17 years, reflect the success of the strategic approach adopted by the group in building a more flexible, diversified, and adaptable business model capable of responding to changes.”

He added: “The recent period has witnessed unprecedented acceleration in economic, technological, and geopolitical transformations across the region and the world, prompting us to reshape our business portfolio and expand our growth sources, with a focus on the highest-impact areas in the digital economy, including artificial intelligence, cybersecurity, digital infrastructure, and cloud services. This ensures performance sustainability and enhances our ability to create long-term value for shareholders.”

Al-Kharafi revealed that, despite the continued uncertainty in regional and international markets and the resulting pressures on key sectors such as roaming, device supply chains, and the business sector in several of our markets, as well as the impacts of exchange rate fluctuations in Sudan and Iraq, the group has continued to execute its strategy with steadfastness and discipline. This was reflected in revenue growth, improved profitability, and an enhanced contribution from digital sectors and new growth drivers, confirming that the group’s performance has become more closely linked to the strength of its operational model and the diversification of its revenue sources, and less affected by market volatility.

He explained: “Operational performance indicators confirm the soundness of this direction, as data revenues rose by 11% to reach $2.3 billion. This growth reflects increasing demand for digital services and advanced solutions, alongside the returns generated from our continuous investments in 5G and 5G Advanced networks and digital infrastructure, which have become a fundamental pillar for supporting sustainable growth across our various markets.”

He added: “Operations in Kuwait, Saudi Arabia, Bahrain, and Jordan achieved growth in 5G revenues, while 5G Advanced services in Kuwait and Saudi Arabia are witnessing strong customer uptake. To maintain this technological leadership, Zain injected capital investments totaling $501 million across all its markets during the first nine months, representing 9% of revenues.”

Al-Kharafi stated: “New growth sectors generated revenues of $759 million, representing a 30% growth rate, while business sector revenues increased by 12%, reflecting the success of the group’s strategy in expanding its revenue base and diversifying growth sources. ZainTECH continues to play a pivotal role in this transformation by expanding its regional presence and developing its capabilities in cloud computing, cybersecurity, data and artificial intelligence, and advanced digital services, amid a notable surge in demand for digital transformation solutions in the region.”

He stated: “Zain International Telecommunications Company (ZOI) has continued to consolidate its position as one of the region’s most critical digital infrastructure and international interconnection platforms, recording exceptional revenue growth of 46%. This performance reflects the accelerating demand for international interconnection services, data center solutions, cloud services, and digital infrastructure, reinforcing Zain’s vision to build an integrated regional digital platform capable of serving the emerging digital economies in the region and connecting them to global markets.

He added that the Group has maintained its regional presence in the financial technology sector, with its fintech services customer base growing by 31% to exceed 6.8 million customers, while revenues increased by 6%. These indicators reflect the rising demand for digital financial solutions and the Group’s growing role in promoting financial inclusion and providing innovative digital services that contribute to improving quality of life and empowering individuals and businesses.

Al-Kharafi said: “Zain Ventures, the Group’s investment arm for emerging technologies and artificial intelligence, is a natural extension of this ecosystem that combines technology and investment. It reflects the success of our approach to investing in future technologies and companies capable of leading the next waves of innovation. This contributes to expanding the value we generate for our shareholders and positions us ahead to seize opportunities arising from the rapid transformations in the global digital economy.

He further noted that the Group has made significant progress in developing its strategic assets and maximizing the utilization of its infrastructure. The first closing of the regional tower platform, in partnership with Ooredoo in Kuwait and Qatar, marked an important step toward building more efficient, scalable, and sustainable platforms. This contributes to enhancing value, achieving higher operational efficiencies, and supporting carbon footprint reduction targets, while continuing to expand into new opportunities and markets that support long-term growth.

Al-Kharafi stated that Zain adheres to the highest standards of governance, transparency, and responsible business practices. The Group’s upgrade in the MSCI Environmental, Social, and Governance (ESG) rating to AA, making it the highest-rated company in Kuwait across all sectors, along with receiving the Gold Standard for Investor Relations certification, reflects its successful efforts in laying the foundations for sustainable growth and strengthening investor confidence.

Al-Kharafi added: “We believe that the success of any institution is linked to its ability to attract, develop, and empower talent to realize its full potential. Therefore, the Group has continued to invest in developing national talent, empowering youth, and enhancing inclusion, diversity, and equity initiatives that ensure a work environment based on equal opportunities and reinforce a culture of innovation and continuous learning. These efforts are an integral part of our vision to build an institution capable of leading transformations through a human capital endowed with the necessary skills and expertise.

Al-Kharafi concluded: “Zain’s ranking first globally in the telecommunications sector in Forbes’ Best Employers list, and its selection among the world’s top 100 companies, exemplify the success of our vision in building an institutional culture that attracts, develops, and motivates talent to innovate. We view this achievement as an extension of a strategy that places people at the heart of the growth ecosystem and invests in preparing future leaders.”

ZainTECH has made progress in expanding its regional presence, with revenues growing by 17%. This momentum extended to the Group’s corporate sector, where revenues in this vital segment rose by 12%, driven by ZainTECH and its business solutions teams securing key contracts with companies and government entities.

Omantel recorded an exceptional 46% jump in revenues, emerging as one of the fastest-growing growth engines. This performance was fueled by rising demand for international capacity, interconnection services, and data centers, reflecting the strength of its unified wholesale business model.

Fintech: The Group’s fintech platform customer base grew by 31% to exceed 6.8 million customers, while revenues increased by 6%. These platforms operate across the Group’s markets: Bede in Kuwait, Bahrain, and Sudan; Tamam in Saudi Arabia, which continues to achieve further growth in micro-consumer financing; and Zain Cash in Jordan and Iraq.

Kuwait: Zain Kuwait maintained its market leadership with a customer base of 2.6 million. Quarterly revenues for the third quarter reached KD 93 million ($302 million), while EBITDA grew by 4% to KD 35.7 million ($116 million), with the EBITDA margin improving to 38%. The company reported net profits of KD 19 million ($62 million) for the quarter, and net profits for the nine-month period totaled KD 55 million ($178 million). Data revenues grew by 7%, accounting for 41% of the company’s total revenues.

Saudi Arabia: Quarterly revenues grew by 3% to $756 million, with EBITDA reaching $223 million (EBITDA margin of 29%). Quarterly net profits amounted to $36 million, while net profits for the nine-month period rose by 45% to $144 million. The rollout of the 5G network, alongside the launch of 5G-Advanced in Riyadh and Jeddah, contributed to a 4% growth in data service revenues, which now represent 41% of total company revenues. The customer base grew by 3% to 8.9 million.

Iraq: Zain Iraq reported quarterly revenues of $368 million, an 8% increase. EBITDA stood at $126 million, and quarterly net profits reached $37 million. Net profits for the nine-month period totaled $108 million. The customer base grew by 4% to 21.1 million, maintaining the company’s market leadership.

Sudan: The company recorded revenues of $155 million during the third quarter of 2026, with EBITDA reaching $71 million (profit margin of 46%). Net profit for the quarter was $63 million, bringing the nine-month net profit to $178 million. The customer base grew by 8% to 13.2 million. Financial results for Zain Sudan’s operations were impacted.

Jordan: Quarterly revenues increased by 4% to $159 million, while EBITDA rose by 5% to $61 million (EBITDA margin of 38%). Quarterly net profits grew by 4% to $21 million, and net profits for the nine-month period reached $61 million, representing a 2% growth rate.

Zain Bahrain reported a 13% increase in its quarterly revenues, reaching $58 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 4% to $16.6 million, with an EBITDA margin of 28%. Net quarterly profits grew by 4% to $4.5 million, and net profits for the nine-month period increased by 2% to $11.3 million. Data revenues rose by 4%, accounting for 47% of the company’s total revenues.