Zain reports record earnings for 2007, highest ever in Kuwait's private sector history

Zain recorded consolidated revenues of $5.91bn (KD1.677bn) for 2007, an increase of 32% compared to 2006. The consolidated EBITDA increased by 25% compared to last year and reached $2.56bn (KD725.34m). Zain also announced a milestone consolidated net income of $1.130m (KD320.45m) as compared to $1.015m (KD294.98m) in 2006 an increase of 11%. Earnings per share stood at $0.61 (172 fils) as against $0.55 (159 fils) in the prior year period, an upsurge of 11%.

Active Customers grew impressively and reached 42.4m (inclusive of 3m Iraqna customers, acquired on December 31, 2007), an increase of 56% on 2006.

Mr. Asaad Ahmed Al-Banwan, Chairman of Zain "Once again we have seen outstanding success over the course of a year delivering strong and sustainable growth across the board. These impressive results reflect the exceptional operational efficiencies in a company that is rapidly expanding across two continents."

Notably Zain's Board of Directors have recommended a cash dividend of 90 fils per share and a 50% stock dividend (bonus shares) for the fiscal year that ended December 31, 2007. The Board also recommended to increase the company's paid in capital by 75% with a nominal value of 100 fils per share and an issuance premium of 750 fils.

Commenting on the company's 2007 financial results and the Board of Directors recommendations, Zain's Managing Director and Deputy Chairman, Dr. Saad Al-Barrak said:

"On one hand, increasing the company's capital will provide Zain with the liquidity that is necessary to enable it to meet its commitments to its stakeholders according to our ambitious strategy of being a top-ten mobile operator by 2011. On the other hand, this increase will play a significant role in reducing the borrowing costs of our operations in the short term and allow us to leverage for the future when the right opportunities arise."

Dr Al Barrak also added, "The successful rebranding of the company's master corporate brand to Zain; the introduction of our ACE strategy; the conclusion in completing a 100% share ownership in Celtel; the expansion of "One Network" free roaming services to 12 countries;, our successful bid to win the third mobile license in KSA and the acquisition of Iraqna in Iraq serve as but a few highlights of Zain's remarkable progress in 2007."