Leading group mobile operator in eight markets across the Middle East and Africa, Zain Group announces that it has maintained consolidated revenues of USD919 million in the first quarter of 2016 in comparision with the same period last year. The company closed the first quarter serving 45.5 million customers. The operator's net income, however went down 9% for the quarter compared to the same quarter a year ago, reaching USD 124 million.
The operator's investments in 3G and 4G LTE network expansion and upgrades continue to pay off as group data revenues (excluding SMS and VAS) grew 8% Y-o-Y, currently representing 21% of the Group’s consolidated revenues. However, the continued social unrest in Iraq coupled with heightened levels of price competition and implementation of a new 20% sales tax on mobile services, as well as wide-ranging tax increases on other sectors in the country have hit spending on mobile services and impacted the group's financials.
Asaad Al Banwan, Chairman of the Board of Directors of Zain Group
We are pleased by the performance of our Jordan and Saudi Arabia operations having invested significantly in 3G / 4G network expansion upgrades and spectrum licenses there and in other markets to improve our customers’ mobile experience.
Scott Gegenheimer, CEO, Zain Group
Our data monetization initiatives on multiple fronts are bearing fruit across all key markets and we draw confidence from the 8% growth in the uptake of data services, which now account for 21% of overall service revenues. The Group will continue to foster and develop this key area of the business.
