Scott Gegenheimer, the CEO of Kuwaiti telecoms giant Zain Group, has announced that the company invested around USD1 billion in network upgrades during 2013. According to local news agency Albawaba Business, the executive commented: ‘Our significant investment, in the vicinity of USD1 billion, in network upgrades during 2013 ties in directly with the tremendous uptake in mobile digital services that we are witnessing across the mobile telecom sector, of which Zain is also a beneficiary.’ Further, Gegenheimer revealed: ‘Growth in data revenues for the company was impressive during 2013, averaging almost 22%, and contributing 13% to Zain’s overall revenues for the year.’ The CEO also stated that Zain Group is planning to focus more on ICT and enterprise solutions in 2014, and ultimately transform itself into an integrated service provider.
As previously reported by TeleGeography’s CommsUpdate, in its financial results for the three months ended 30 September 2013, Zain Group posted flat year-on-year revenues of KWD313.0 million (USD1.1 billion) when compared to the corresponding period in 2012. EBITDA for the three month period under review reached KWD134.0 million, while the company booked a net profit of KWD53.0 million in 3Q13, a 12% decrease on the KWD59.7 million reported twelve months earlier. The negative results were party explained by foreign exchange currency losses predominantly in the Republic of Sudan, which reduced the group’s revenue by USD41.0 million and EBITDA by USD17.0 million.