Zain's H1 profits surge 73% to $717 million

- Nour Al-Jassim: The Group continues its strategic investments to maximize shareholder rights

- Bader Al-Kharafi: “Zain” achieves exceptional performance with record revenues, the highest in over 15 years

- 6% growth in EBITDA to reach $1.23 billion

- 15% increase in data services revenues to reach $1.5 billion, representing 40% of total revenues

- New growth engines maintain strong momentum with 36% growth, generating $479 million in revenues

- “Zain” continues growth in fintech, recording a 29% increase in revenues

- “Zain’s” operating license in Syria is valid for 20 years (+5 years extension), with plans to launch services starting in 2027

Zain Group (listed on the Kuwait Stock Exchange under the ticker: “ZAIN”) recorded exceptional growth in its net profit for the first six months of the current fiscal year 2026. Net profit surged by 73% to reach KD 220 million ($717 million), compared to the same period in 2025, with earnings per share (EPS) standing at 51 fils.

Zain, the leading technology innovation company in Middle East 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 KD 1.14 billion ($3.71 billion), marking the highest level in over 15 years compared to the same period in 2025.

The Group reported that EBITDA grew by 6% to reach KD 378 million ($1.23 billion), with an EBITDA margin of 33%.

The net profit for the first half of the year included gains of $411 million from strategic investments executed by Zain Ventures, which manages and leads the Group’s investment portfolio. The Group noted that data services revenues increased by 15% to reach $1.5 billion, accounting for 40% of consolidated total 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 in the first half, the Zain Group Board of Directors approved an exceptional interim cash dividend of 17 fils per share. This move reflects the strength of the financial performance and the Group’s commitment to sharing the fruits of achieved growth with shareholders. The cash dividend distribution is scheduled to begin on October 6, 2026.

Quarterly financial results for the second quarter showed consolidated revenues growing by 5% to reach KD 568 million ($1.85 billion). EBITDA rose by 5% to reach KD 196 million ($639 million), with an EBITDA margin of 35%. Meanwhile, quarterly net profit surged by 90% to reach KD 140 million ($457 million), with EPS of 32 fils. (The net profit for Q2 2026 includes gains of $288 million from strategic investments executed by Zain Ventures).

The Group attributed the growth in its financial indicators for the first half to strong operational performance, driven by data revenue growth, continuous expansion of 5G services, and an increase in the customer base. This was accompanied by strong growth in the corporate, projects, and enterprise sector revenues, as well as strong growth rates achieved by new growth segments. Furthermore, the Group’s continuous efforts to enhance operational efficiency and maximize returns on its strategic investments contributed to this success.

Noura Al-Jassim, Chairperson of the Board at Zain Group, stated: “The financial results were driven by the diversification of operational activities and the leveraging of investment opportunities in the region, as the Group successfully strengthened its role as a catalyst for digital transformation and a supporter of economic growth.”

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

Al-Jassim noted that the Group aims to build a more integrated digital ecosystem capable of keeping pace with the future, grounded in 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 Zain Group, said: “These financial results come against the backdrop of a regional environment marked by exceptional geopolitical challenges, whose impacts were reflected in business flows, supply chains, and commercial and economic activities, necessitating that institutions strengthen their operational capacities and raise their levels of readiness and resilience.”

He 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. Stemming from 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 during the first half of 2026 amounted to $252 million, representing 7 percent of revenues.”

Al-Kharafi explained 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, with the fruits of this progress clearly evident in financial and operational performance. This has been achieved by building a more diversified business portfolio capable of adapting to 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. The disciplined implementation of the strategy has strengthened the upward trajectory of revenues, with consolidated revenues rising by 5 percent to reach 1.14 billion dinars. Data services continued to play a key role in driving the Group’s financial performance, with revenues from this vital sector increasing by 15 percent, 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 percent, while Zain Iraq achieved growth of 7 percent. In Kuwait, continuous investments in the advanced 5G 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 percent devaluation of the currency, despite continued strong operational performance in local currency and the ongoing implementation of network restoration and expansion plans.”

As part of Zain Group’s continued implementation of its expansion strategy and strengthening of its regional presence, Al-Kharafi stated that “the Group’s entry into the Syrian market represents one of the most important strategic milestones in its journey over recent years. Zain won the 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, during which the Group submitted the best bid according to tender criteria.”

He emphasized that “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 in Syria’ brand 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 remarkable progress during this period, with their revenues rising by 36 percent to reach $479 million, contributing 13 percent of the Group’s total revenues. 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 today 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 key drivers of the Group’s future growth and expansion. Its operations recorded a 24 percent revenue growth over the first six months.

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 percent increase in corporate, project, 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 rising spending on digital infrastructure and advanced technological solutions, which will enhance its role as a key contributor to diversifying the Group’s revenue sources in the future.

Zain International Telecom Company (ZOI) continues to deliver outstanding financial and operational performance, achieving exceptional results despite ongoing regional disruptions. Revenues surged by 45 percent to reach approximately $287 million.

The performance was bolstered by strong demand for regional and international interconnection services, alongside continuous progress in ZOI’s strategic infrastructure program. Key developments included further advancement in submarine cable corridor projects, robust execution of Saudi Arabia’s 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 interconnection services.

The financial technology sector maintained strong momentum during this period, with the customer base growing by 35 percent across the Group’s various markets, contributing to increased revenues and digital financial transaction volumes. This growth reflects the success of the Group’s strategy to expand its digital financial services through specialized platforms, including its brand (baya) in Kuwait, Bahrain, and Sudan; (Tamam) in Saudi Arabia; and (Zain Cash) in Jordan and Iraq.

Financial technology service revenues jumped by 29 percent, 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 investments and achieve tangible gains during the period, leveraging its investments in venture capital funds and the global startup ecosystem. Strategic investments by Zain Ventures recorded notable gains of $411 million over the six-month period.

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 percent to reach $113 million, achieving an EBITDA margin of 39 percent. 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 percent and accounting for 41 percent of total revenues.

Zain Saudi Arabia delivered a strong performance in the second quarter, with its customer base growing by 8 percent to reach 8.9 million. The company recorded revenues of $707 million, while EBITDA rose by 3 percent to reach $233 million, with an EBITDA margin of 33 percent. Net profit surged by 60 percent to reach $54 million (compared to an 84 percent increase to $108 million in the first half of 2026), supported by higher Universal Service Fund (USF) revenues.

Zain Iraq recorded revenues of $334 million, representing a 7 percent increase ($660 million for the first half), up by 10 percent compared to the same period in 2025. This growth was driven by the strong execution of the company’s strategy, continued expansion of network deployment 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 percent to $122 million in the second quarter (and by 5 percent to $232 million in the first half), while net profit rose by 3 percent to $41 million in the second quarter and by 7 percent 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 percent to 12.9 million, despite the company operating within a highly complex operational environment. An additional 40 percent 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 reported financial results. Adjusting for the impact of applying IAS 29, second-quarter revenues declined by 7 percent to $126 million, while EBITDA fell by 13 percent to $66 million. Net profit stood at $59 million in the second quarter and $115 million in the first half. Data services revenues also rose by 8 percent, accounting for 7 percent of total revenues.

Zain Jordan delivered a strong performance in the second quarter, recording growth across both financial and operational metrics. Revenues increased by 4 percent to $154 million, while EBITDA rose by 5 percent to $60 million, achieving an EBITDA margin of 39 percent. Net profit grew by 2 percent to $21 million (up 1 percent to $40 million in the first half). Data revenues expanded by 11 percent, supported by the ongoing expansion of the 5G network, now representing 57 percent of total revenues.

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

Zain Bahrain maintained a stable performance in the second quarter, with revenues reaching $52 million. EBITDA increased by 2 percent to $15 million, achieving an EBITDA margin of 30 percent. Net profit amounted to $3.7 million, up 1.4 percent (up 1.2 percent to $6.8 million in the first half).