Zain upbeat about its Sudan operations

Zain upbeat about its Sudanese operations.

Positive revenues and earnings report reflects good growth for the Kuwaiti firm in Africa.

Revenues and earnings grew by 18% for Zain Sudan, according to the Kuwaiti telecoms group’s consolidated financial results for the full-year and fourth quarter ended 31 December, 2013.

Zain says it has 11.7 million customers in Sudan and a 43% market share in that country.

And in a statement, the company says it “continues to excel in local SDG currency terms.”

Data revenues for Zain Sudan also grew 49% during the period amid a network expansion.

Other factors have also helped along Zain Sudan, the company has explained.

“A favorable telecom tax law was introduced in mid-June 2013 that saw a 2.5% levy on operators’ revenues introduced for a period of three years replacing the 30% corporate income tax.

“This is set to enhance Zain Sudan’s financial position,” says the company in a statement.

But Zain says a 35% devaluation in the Sudanese currency during 2013 has had “an enormous effect on the group’s overall results”.

Meanwhile, across Zain’s Middle East and Africa operations, the company says it added 3.4 million additional customers over the last twelve months to serve 46.1 million globally, reflecting an 8% growth rate.

“For the twelve months of 2013, Zain Group generated consolidated revenues of USD 4.4 billion. Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the period reached USD 1.9 billion, reflecting a healthy EBITDA margin of 43.4%. Consolidated net income amounted to USD 764 million, reflecting Earnings Per Share of USD 0.20,” says the company.

Zain has eight operations globally, spanning from Iraq to Sudan.