Zain profits jumps after sale of African assets

Zain has reported that its second-quarter profit reached US$2.95 billion compared with US$267,101,209 a year earlier, thanks to the disposal of its African assets.

A statement issued by the company on Tuesday and posted on the company’s website, said Zain made a first-half profit of $3.1 billion, which included $2.65 billion from the sale of assets in Africa.

For the first half of 2010, the Zain Group recorded consolidated revenues of US$ 2.33 billion, an increase of 10% compared to the same period of 2009.

After the conclusion of the sale of Zain Africa on June 8, 2010, the company received cash proceeds of US$7.868 billion of which proportionate capital gain profit, is reflected in the first half of 2010 net income results.

“Despite the challenging global economic conditions and the competitive markets in which we operate, we are extremely pleased with the 10% revenue increase, which is in line with our expectations as well as the record profit that is the largest in the company’s history,” the statement quoted Mr Asaad Al Banwan, Chairman of the Board of Directors of Zain as saying.

“With the sale of the Zain Africa assets now concluded, coupled with a healthy cash balance and reduced debt levels, the company is now well positioned to focus on, and further grow, its profitable Middle East operations. Better things are yet to come as we diligently strive to maximize shareholders’ value in this new era.”

Zain Group Chief Executive Officer, Mr Nabeel Bin Salamah, was also quoted as saying that “with our Saudi Arabia operation achieving breakeven EBITDA and seven million customers in only 22 months of operation, coupled with the impressive customer and revenue growth in our Sudan and Iraq operations, and Kuwait maintaining its market share despite the entry of a third operator, we are confident these impressive results will continue.”

Source: GNA