Zain Group, a leading mobile telecom innovator in eight markets across the Middle East and Africa, reported a growth of 2% in profits during the fiscal year 2016 as consolidated net income reached KWD 157 million ($USD519 million).
For the full-year 2016, Zain Group generated consolidated revenues of KD 1.1 billion (USD 3.6 billion), down 4% compared to the year before. As for the fourth quarter ended December, Zain Group recorded consolidated revenues of KD 261 million (USD 860 million), a decline of 8% on the same period of the previous year.
Zin said currency devaluation of nearly 60% in Sudan cost the company around USD 92 million in revenue, USD 38 million in EBITDA and USD 44 million in net income.
Specifically, for the fourth quarter of 2016, this has impacted the company USD 83 million in revenue.
Substantial investments in 3G and 4G LTE network expansion and upgrades continue to pay off as Group data revenues (excluding SMS and VAS) increase 6% during 2016, representing 23% of the Group’s consolidated revenues.
Scott Gegenheimer, CEO, Zain Group
Considering the sound operational progress and transformation we have undertaken across all our markets, it’s unfortunate that exceptional circumstances such as the currency issue in Sudan and the tax settlements in Iraq affected our financial performance, as it would have otherwise been very positive.
