Mobile Telecommunications K S C P : Transcript of the Analysts Conference

Q2 2022

Earnings Conference Call

July 18, 2022

Zain Group Q2 2022 Earnings Call Transcript

Monday 18 July 2022

1:30 PM Kuwait Time

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Zain Group Executive Management:

Ossama Matta - Group Chief Financial Officer

Mohammad Abdal - Group Chief Communications Officer

Mohammed Shereef - Group Head of Finance

Iyadh Borgi - Group Operation & Business Perf. Executive Director

Aram Dehyan - Group Investor Relations Director

Moderator:

Omar Maher, EFG Hermes

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Omar Maher:

Greetings ladies and gentlemen, this is Omar from EFG Hermes, and I would like to welcome you all to the Zain Group's Q2 2022 Results Conference Call. It is my pleasure to host Zain Group senior management today on the call. By now you should have received the company's presentation and earnings release for the 2nd quarter and detailed financials which have all been uploaded on the Group's website.

Now without further delay, I will hand the call to Mohammad Abdal, Zain Group's Chief Communications Officer. Thank you.

Mohammad Abdal:

Thank you, Omar. And welcome everyone to Zain's Q2 2022 earnings conference call. With me today Ossama Matta, Group CFO, Mohammed Shereef - Group Head of Finance, Iyadh Borgi, the Operation & business Performance Executive Director and Aram Dehyan, IR Director.

In a moment, we will take you through the IR presentation which has been posted earlier today on our corporate website, and after that we're happy to answer any question, you may have.

During this call, we will be making forward-looking statements which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties.

Please refer to our detailed cautionary statement found in slide number 2.

With that, I will now turn the call over to Ossama.

Ossama Matta:

Thank you, Mohammed. Good afternoon to everyone and thank you for joining us on today's call, I hope you all had a great Eid Adha break with your families.

Let me start by saying that the Board and Management are very pleased to announce another well executed quarterly performance, delivering double-digit growth in Revenue and Net Income.

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We continue to execute on our '4Sight' corporate strategy, which is, driving growth, digital transformation, and optimal efficiencies across all operations

We continue to achieve numerous milestones along with profitable growth across all key operations. In particular, Kuwait, Sudan and Saudi Arabia performed exceptionally well in all their respective key financial indicators.

Our continued focus on introducing cutting-edge digital platforms and monetizing our 4G & 5G networks, targeting consumers, businesses and governmental entities, saw significant growth across several key markets with data revenue reaching USD 1.1 billion. This represents 40% of consolidated Revenue.

Moreover, we are thrilled with our B2B revenue growth of 21% YoY, powered by ZainTech, which witnessed the addition of many key corporate and government related accounts across our footprint.

Let me start off by noting several significant accomplishments that occurred in Q2. On page 7 of the presentation:

• Regarding the Tower Transaction in Zain KSA, as we mentioned in our last call, the Board of Zain Saudi Arabia already approved the sale of its towers to PIF. We expect this to finalize in H2 2022.
  Similar TowerCo transaction is in progress in Iraq, expected H2 2022.
• A great milestone for Zain Kuwait, becoming the first telecom operator globally to launch Vo5G with nationwide coverage.
• Zain Kuwait successfully completes the first live trial in the region for 4G/5G Open and Cloud Native Radio Access Network (cRAN).
• Over all Zain Group Digital revenue grew 43% YoY. Dizlee, the Zain Group API platform, grew exponentially with 26 digital partnerships offering 51 live services resulting in an impressive 5.5 million transactions per month and a 34% YoY increase in revenue.

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