Zain Group reports exceptional performance for 9 months of 2025

29/10/2025 04:37 AST

Zain Group, a leading provider of innovative ICT and digital lifestyle communications operating in eight markets across the Middle East and Africa, announced its consolidated financial results for the third quarter (Q3) and nine-months (9M) periods ended September 30, 2025. The Group now serves 51.3 million active customers, a 9 percent year-on-year (YoY) increase.

For 9M 2025, Zain Group reported a 16-year high consolidated revenue of KD 1.7 billion ($5.4 billion), an increase of 15 percent YoY. Consolidated EBITDA reached KD 552 million ($1.8 billion), up 9 percent YoY, reflecting an EBITDA margin of 33 percent. Net income soared 31 percent YoY to KD 178 million ($581 million), while earnings per share (EPS) stood at 41 fils ($0.13).

Board declares 2nd interim cash dividend of 25 fils for year-to-date profits as of September 30, 2025. As part of the Group's commitment to the highest standards of transparency and financial compliance, the Board of Directors continues to review global accounting regulatory frameworks and is currently considering the possibility of implementing International Accounting Standard IAS 29 before the end of the current year.

Preliminary assessments indicate that the adoption of this standard is not expected to have a material impact on total shareholders' equity, and that the impact on the financial results of the current year, 2025, is expected to be positive. This will be confirmed following the completion of the requirements and implementation of the accounting standard and retaining the option of presenting this matter to the General Assembly for approval.

Due to the robust results of the first nine months of 2025, that saw earnings per share reach an exceptional 41 fils, the Board of Directors has declared a second interim cash dividend of 25 fils per share for profits achieved for period ending September 30, 2025. Registered shareholders will receive payments on November 19. This second interim dividend comes in addition to the earlier interim dividend of 10 fils per share for the first half of 2025. With these two distributions, Zain Group has fulfilled its obligations related to the dividend distribution policy.

This advanced step reflects the strength of Zain Group's financial position and high liquidity. It also highlights the successful execution of the 4WARD business strategy and leadership position across Zain's markets.

This exceptional performance could not have been achieved without the confidence and support of our shareholders. The disciplined execution of our business strategy continued growth in core sectors, and expansion into new growth areas have placed the Group's operations on a leading path that enhances competitiveness and establishes a new phase of financial and operational excellence.

We extend our gratitude to our shareholders for their continued trust, which has driven us to develop flexible business models that keep pace with developments, respond efficiently and effectively to market changes, and contribute to building sustainable value that translates into successive achievements. The Board remains confident in the Group's ability to sustain this momentum, supported by sound governance, resilient operations, and disciplined financial management".

In Q3 2025, Zain Group generated consolidated revenue of KD 582 million ($1.9 billion), an increase of 16 percent YoY. EBITDA for the quarter reached KD 196 million ($641 million), up 9 percent YoY, reflecting an EBITDA margin of 34 percent. Net income for the three-month period amounted to KD 57 million ($187 million), up 5 percent YoY, with earnings per share (EPS) of 13 fils ($0.04)

Key operational notes for Q3 & 9M 2025
1.Interim cash dividend of 10 fils per share, totaling KD 43.3 million ($141.5 million) was distributed to eligible shareholders on September 3, 2025 for the first half of the year
2.Exceptional net profit growth in Sudan (+92 percent), Iraq (+21 percent), and KSA (+16 percent) during 9M 2025
3.9M 2025 data revenue grew 11 percent YoY to reach $2 billion, representing 37 percent of Group revenue
4.Zain invested $699 million in CAPEX during 9M 2025, representing 13 percent of revenues
5.Growth verticals delivered $562 million in revenue, representing a robust growth of 98 percent YoY
6.Fintech services witness revenue growth of 57 percent for 9M 2025 powered by Taman and Zain Cash
7.Groupwide enterprise revenue witnessed 9 percent growth YoY, as ZainTECH and B2B teams win key business and government accounts; ZainTECH revenue soared 74 percent YoY
8.Groupwide digital services revenue growth of 5 percent YoY driven by increase in Sudan, Kuwait and Dizlee API
9.Zain Omantel International (ZOI) records exceptional revenue growth of 172 percent YoY
10.Digital operators 'Yaqoot' in KSA and 'oodi' in Iraq record impressive 9M revenue growth
11.Operations in Kuwait, KSA, Bahrain and Jordan witness impressive growth in 5G revenues
12.Zain Group's MSCI rating for ESG upgraded to 'A'
13.Zain receives 'Best Corporate Governance in Kuwait' award from World Finance
14.Zain KSA secures SAR 5.5 billion strategic refinancing agreement at favorable terms
15.Zain Great Idea (ZGI 2025) Accelerator program expands across the region

Chairman of the Board of Directors of Zain Group Osamah Al-Furaih said, "Our operations have shown great resilience to grow market share despite many competitive and socio-economic challenges they face. The Board is focused on supporting management execute key business strategies and ESG practices on the back of vast investments in technologies, digital infrastructure, new business verticals as well as in Sustainability related and customer experience initiatives. This collaborative effort has positioned Zain as the digital service operator of choice for consumers, enterprises, and government."

Bader Al-Kharafi, Zain Vice-Chairman and Group CEO, commented, "Diligent implementation of the 4WARD strategy and AI initiatives is accelerating rollout of digital services, operational efficiencies and revenue growth across all aspects of the business. Our collaborative efforts have seen most of our operations all report robust year-on-year growth in their key financial metrics, as have our strategic business verticals, namely ZainTECH, Zain Omantel International (ZOI) and in our Fintech and Digital Services entities. These comprehensive efforts have resulted in Zain recording 16-year revenue highs for both the 3M and 9M periods."

"Our recent ranking in Forbes "World's Best Employers" list, whereby Zain ranked first in the regional Telecom sector, as well first in Kuwait and among top three employers in the Middle East, reflects how serious we are in taking responsible business action by building a thriving, inclusive and diverse workplace, creating the workplace and world we all want. Beyond providing life-enriching digital services and embedding sustainability and meaningful connectivity in every aspect of our business, Zain is committed to fostering an ecosystem that drives systemic change across our footprint."

"We were delighted to play a critical role in Kuwait setting a Guinness World Records title for the farthest intercontinental remote robotic surgery over 12,000 km. This global medical achievement, alongside national institutions reaffirms our leadership in driving digital transformation in the healthcare sector in Kuwait and beyond. This achievement is not only a world record, but also a serious step toward a thriving digital future in which we harness technology to serve people, from our markets to the world. It also reflects the purpose we have embraced at Zain to deliver 'Lasting Connections and Better Lives."

"Zain Group's MSCI rating for ESG upgrading to 'A' also reflects the success of our transformative '4WARD-Progress with Purpose' strategy in driving the company's sustainability, corporate governance and ethical leadership agenda to new heights. This upgrade reaffirms the success of the company's focus on innovation and responsibility, powered by a resilient, sustainable and data-powered ecosystem."

"With the aim of enhancing the purpose of innovation, we expanded the Zain Great Idea (ZGI) Accelerator program expands across the region from Kuwait to now include Bahrain, Iraq, Jordan, Saudi Arabia and UAE. Expanding ZGI across our footprint, powered by Zain Ventures and ZainTECH, is a natural evolution of our commitment to nurturing regional talent and driving meaningful change."

"The fifth consecutive award of receiving the 'Best Corporate Governance in Kuwait' award from World Finance reflects the depth and consistency of our ethical, compliant and transparent standards providing stakeholders, including investors, with the confidence that the company is being run in a compliant and transparent manner. Solid corporate governance is the backbone to our strategy and regional appeal in driving continued growth and success, that has attracted ongoing praise and admiration from shareholders, industry analysts, and regulatory authorities."

Operational review of key markets for the Q3 & 9M period ended September 30, 2025

Kuwait: Zain Group's flagship and most profitable operation maintained its market leadership, serving a customer base of 2.6 million. Q3 2025 revenue increased 5 percent YoY to KD 99 million ($323 million), while EBITDA reached KD 34.5 million ($113 million), reflecting an EBITDA margin of 35 percent. Q3 net income reached KD 20 million ($64 million) while 9M 2025 net income stood at KD 60 million ($196 million). Data revenue grew 4 percent YoY, representing 36 percent of total revenue. Continued investment in 5G-Advanced networks, coupled with enhanced customer experience, AI and monetization initiatives across individual, enterprise, and government segments, remain key drivers of growth.

Saudi Arabia: Revenue for Q3 2025 grew 6 percent YoY to reach $733 million, with EBITDA growing 0.3 percent to reach $229 million, reflecting an EBITDA margin of 31 percent. Net income for Q3 increased 2 percent to reach $41 million and 9M 2025. Net Income increased 16 percent to reach $99 million. The operator's 5G network, now covering 90 cities and 67 percent of the country, drove a 4 percent increase in data revenue, representing 40 percent of total revenue in 9M 2025, while customer base stood at 8.6 million. The launch of device sales by Yaqoot through online platform partners alongside key AI and monetization initiatives in Zain KSA were instrumental in accelerating customer growth and boosting revenues, while enhancements to its fintech entity, Tamam, strengthened the platform's performance, resulting in higher loan approvals and volumes resulting in a 23 percent YoY increase in revenue.

Iraq: Zain Iraq recorded revenues of $342 million in Q3 2025, marking a 20 percent year-on-year increase, with nine-month revenues reaching $942 million, up 18 percent from 2024. Zain Iraq's customer base increased 5 percent year-on-year to reach 20.4 million, maintaining its market leading position. EBITDA grew 7 percent to $129 million with a 38 percent margin, while net profit rose 19 percent to $47 million in Q3 and 21 percent to $113 million for the nine-month period.

Sudan: Revenue for Q3 2025 soared 147 percent YoY, to reach $143 million, EBITDA soared 262 percent reaching $82 million, reflecting an EBITDA margin of 57 percent. Q3 net income surged by 77 percent to reach $59 million while 9M 2025 net income increased 92 percent to reach $171 million. Customer base expanded by 39 percent YoY, reaching 12.2 million. Stabilization of situation in Khartoum and several other major population centers marked a pivotal turning point for the operation. The restoration of over 650 sites and upgrade of 315 sites to 4G have enabled the return of approximately 7 million customers to the network. This combined with the ongoing monetization initiatives boosted commercial activity and revenue growth.

Jordan: Q3 2025 revenue grew 8 percent YoY to reach $152 million, with EBITDA for Q3 up 3 percent to reach $58 million, reflecting an EBITDA margin of 38 percent. Net income for Q3 stood at $20 million while 9M 2025 net income stood at $59 million with growth of 7 percent. The ongoing expansion of 5G, FTTH and 4G services across the country led to data revenue growth of 14 percent for 9M 2025, which now represents 54 percent of total revenue. Zain Jordan served 4.3 million customers, up 1 percent, maintaining its market leadership.

Bahrain: Revenue for Q3 2025 grew 3 percent YoY to reach $52 million, with EBITDA reaching $16 million, reflecting an EBITDA margin of 31 percent. Q3 net income increased 1 percent to reach $4.4 million and 9M 2025 net income increased 3 percent to $11 million. 9M 2025 data revenue grew 5 percent to represent 46 percent of total revenue.

Board declares distribution of a second interim cash dividend of 25 fils per share for year-to-date profits as of September 30, 2025
Group consolidated EBITDA grew 9% to KD 552 million ($1.8 billion) for 9M 2025
Q3 2025 revenue up 16% YoY to reach KD 582 million ($1.9 billion), Net income up 5% to KD 57 million ($187 million)
Interim 10 fils dividend totaling KD 43.3 million ($141.5 million) distributed to shareholders on September 3, 2025
Customer base grew 9% to reach 51.3 million, driven by network restoration in Sudan and expansion in Iraq
Data revenue grew 11% YoY to reach $2 billion, representing 37% of total Group revenue
Exceptional net profit growth in Sudan (+92%), Iraq (+21%), and KSA (+16%) during 9M 2025
Growth verticals delivered $562 million in revenue, representing a robust growth of 98% YoY
Enterprise revenue grew 9%, as ZainTECH and local B2B teams win major clients
ZainTECH revenue rose 74% YoY, supported by strategic global partnerships & expansion of portfolio services
Zain Omantel International (ZOI) records remarkable revenue growth of 172% YoY
5G-Advanced services across Kuwait and KSA driving strong customer adoption
Fintech revenue soared 57% YoY across multiple markets
Group's digital operators, Yaqoot in KSA and oodi in Iraq achieved robust revenue growth

Key business highlights-Q3 and 9M 2025

Kuwait Times