Zain, is a leading mobile telecommunication operator in the Middle East and Africa with presence in 22 countries, including Nigeria. The company said its consolidated financial results for the third quarter of 2008, also showed significant growth in customer numbers taking it to 56.3 million subscriber base.

The company also announced an increase in its financial base, raising about US$4.5 billion through its capital increase, which would be injected into the network to make it solid foundation for its 2011 targets of being a top-ten global telecommunications company.

Announcing the development, Zain Chief Executive Officer, Dr. Saad Al-Barrak said that though the quarter was both most challenging and most rewarding in Zain’s corporate history, the company was delighted with the Nigerian operation, witnessing exponential customer growth based on the heavy investment in network upgrades and expansion.

According to Al-Barrak,“despite financial turmoil across the globe, we are delighted to have succeeded in raising US$4.5 billion through our capital increase.

Additionally the launch of services of the Kingdom of Saudi Arabia has been very successful given we have acquired one million customers in less than two months notwithstanding the fierce competition in that market.”  

“Our ground-breaking “One Network” service now linking two continents is playing a pivotal role in customer acquisition, contributing to the success of the Saudi Arabia launch as well as in the other 15 operations where it is available.

“In recent years we have invested heavily in both licence acquisitions and network upgrades on two continents so as to meet our 2011 targets of 150 million customers and US$6 billion EBITDA. Nevertheless, we continue to record impressive financial results this quarter reflecting exceptional operational efficiencies and we expect even better results in the years ahead.

Our Kuwait operation continues to contribute considerably to our net profit and our team are focused on strategies to contest the 3rd mobile entrant expected later in 2008.

The Bahrain operation continues to shine exceeding all targets, while our operations in Iraq, Jordan and Sudan are maintaining their respective markets share in competitive and challenging environments.

The integration of the acquired Iraqna operation in Iraq has been successfully completed and we expect to reap the rewards in the not so distance future”.

On Africa, Dr Al Barrak stated that “our Nigerian operation is witnessing exponential customer growth based on the heavy investment in network upgrades and expansion. We are extremely excited by the future potential in all facets of this operation.”

He said that on Sept 20, 2008 Zain successfully completed its capital increase, raising US$4.5 billion (KWD1.2 billion) with 99 per cent of all shareholders subscribing.

The amount raised, he said, was unprecedented in Kuwaiti’s history exceeding all expectations, given the gloomy trends that have recently dominated local and international markets and resulted in sharp declines in the prices of oil as well as significant collapses in the financial markets worldwide.

According to him, “the successful completion of this capital increase is an unanimous vote of confidence by our shareholders in Zain’s management team, the performance to date and in our profitable expansion strategy.

The proceeds will provide the company with the liquidity necessary to continue its ambitious expansion strategy, while reducing the borrowing costs of the company’s operations and increasing shareholder value in the long term, be used to finance future strategic expansion plans and meet financial commitments” he added.

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