Zain income soars on sale of Africa assets

In June, Zain announced that it had sold businesses in 15 African countries excluding Sudan and Morocco to India-based Bharti Airtel for US$10.7 billion.

The deal was completed on June 8, following which Zain received cash proceeds of US$7.868 billion.

Zain Group recorded consolidated revenues of US$2.33 billion an increase of 10% compared to the same period of 2009, while EBIT of US$716 million was reported.

The number of served customers reached 34.2 million, an increase of 28%,the group said.

"Despite the challenging global economic conditions and the competitive markets in which we operate, we are extremely pleased with the 10% revenue increase which is in line with our expectations as well as the record profit that is the largest in the company's history," said Asaad Al Banwan, chairman of the board of directors of Zain.

"With the sale of the Zain Africa assets now concluded, coupled with a healthy cash balance and reduced debt levels, the company is now well-positioned to focus on, and further grow, its profitable Middle East operations.

"Better things are yet to come as we diligently strive to maximise shareholders' value in this new era."

Over the next six months, Zain said it expects to receive up to an additional US$400 million from Bharti.

The balance of US$700 million is due one year from completion as per the original agreements signed on March 30, 2010.