Zain records revenue growth in Sudan

Zain records revenue growth in Sudan.

Meanwhile, the Kuwaiti headquartered telecoms company reports sluggish South Sudan results.

The Sudan operations for Kuwaiti headquartered telecoms company Zain recorded a 4% revenue increase in US dollar terms for the first quarter ended 31 March 2014.

Zain has operations in eight countries across the Middle East and Africa with a 46.2 million customer base.

And according to a statement, the telecom player’s customer base in Sudan also grew to reach 11.9 million at the end of the period.

Last year Zain stated that it had 11.7 million customers in Sudan and a 43% market share in that country.

While Zain notes a 4% growth for its Sudan operations, the growth figure in Sudan’s local currency, the Sudanese pound, is reflected to be higher because of this currency weakening dramatically against the dollar in this year.

“In local SDG currency terms, revenues grew by 8% year-on-year,” reads the statement.

Meanwhile, Zain notes that its South Sudan operations “had several challenges that resulted in reduction of customer base.” But Zain has not listed the challenges or the size of its market in South Sudan.

The telecoms group also announced that for the first quarter of 2014 it generated consolidated revenues of $1.1 billion (KD 311.1 million) up 4% when compared to the same period in 2013.

“Consolidated group data revenues (excluding SMS and VAS) witnessed a healthy 27% growth year-on-year, with data now forming 15% of all Zain’s service revenues,” the company says.

The telco also noted that the two loans announced this year also contributed to the growth of group revenue.

According to Zain earnings before interest, tax, depreciation, and amortisation (EBITDA) reached $469 million (KD 132.2 million) compared to $448.7 million during the first quarter of 2013.

This resulted in a comparative increase of 5%, Zain noted.

Scott Gegenheimer, Zain group chief executive officer, said, “Across many of our markets, we are witnessing growth in key financial indicators as we drive efficiency and innovation.

“The healthy 27% annual growth rate in data revenues with data now reflecting 15% of all Zain group’s service revenues, emphasises the appeal and quality of our product and service offerings and justifies the huge investment we continue to make in our 3G and 4G networks.”