Mobile operator Zain '07 Profits Rise By 11 Percent to Hit $1.13 Billion

Mergers, Acquisitions and Financial Results

Zain Group, the Kuwait-based telecoms company that owns local mobile phone firm, Celtel Kenya, has announced full-year results for 2007 showing its profits rose by 11 per cent riding on robust revenue growth.

The results show the telecom firm's revenues jumped by 32 per cent to settle at $5.91 billion and net profit hit $1.13 billion compared to $1.01 billion in 2006. "These results reflect improvement in operational efficiencies across two continents," said Saad Al-Barrack, the managing director and deputy chairman.

It was not possible to unravel the performance of Celtel Kenya from the results that are the first since the Kuwaiti company took over the pan-Africa telecoms operator, Celtel but industry sources said Celtel pushed up its subscriber base by two million in Kenya, realising a 30 per cent increment.

Al-Barrack said the positive results are the product of successful re-branding and the company's foray into new product areas. Zain Group has maintained the Celtel brand since it took over the company early last year. The firm concluded its 100 per cent ownership in regional operations, giving it access to some of the fastest growing markets in the world.

Last year, Zain Group's active customer base grew by 56 per cent to 42.4 million from 2006 levels. Al-Barrack said Zain Group would use cash and stock dividends to raise $4.4 billion, which it will use to consolidate the gains in 22 of its operations across Africa and the Middle East.

Business Daily