ZAMBIA: Country's leading mobile service provider Zain Zambia posts a 49.3 million US dollars net profit amidst reduced commodity prices

Record ID: 452639

  • Title: ZAMBIA: Country's leading mobile service provider Zain Zambia posts a 49.3 million US dollars net profit amidst reduced commodity prices
  • Date: 13th February 2009
  • Summary: LUSAKA, ZAMBIA (FEBRUARY 12, 2009) (REUTERS) VARIOUS OF LUSAKA CITY SKY-SCRAPERS VEHICLES PARKED UNDER ZAIN BILLBOARD MAN TALKING ON MOBILE PHONE ZAIN CENTRE POSTER RED AND WHITE BALLOONS OUTSIDE ZAIN CENTRE ZAIN EMPLOYEE AT COUNTER VARIOUS OF ZAIN CUSTOMERS ON QUEUE BEING ATTENDED TO BY EMPLOYEE CHRIS GABRIEL, CHIEF EXECUTIVE ZAIN AFRICA, ZAIN ZAMBIA BOARD CHAIRMAN, GEORGE SOKOTA AND OTHER EXECUTIVES TAKE SEATS CAMERA OPERATOR CAMERA (SOUNDBITE) (English) CHRIS GABRIEL, CHIEF EXECUTIVE, ZAIN AFRICA, SAYING: "There is an opportunity in that acquisition targets historically are much more affordable and so we are well placed to look at those but again, we have to be astute we have to make sure their value are accretive and also because their value has come down in the market place of companies we need to make sure that the acquisitions we look at pay the right value for. So there are still companies that see their values up there but in reality in market place it's very low, so the time frame in terms of the negotiation process obviously extends out but make no mistake we are still committed to our growth objectives both organically and by acquisition and are actively looking at other opportunities as we speak." BLACKBERRY / BOX AND PRICE TAG PRICE TAG POSTER OF ZAIN WIN A BUS COMPETITION EXTERIOR OF LUSAKA STOCK EXCHANGE INTERIOR OF LUSAKA STOCK EXCHANGE BROKER FIGURES ON COMPUTER (SOUNDBITE) (English) GEORGE SOKOTA, CHAIRMAN, ZAIN ZAMBIA BOARD, SAYING: "When we went out for the IPO there was a large portion of the shareholding which went to external shareholders in particular institutional shareholders and its most of that which has driven the share price where it is in terms of exiting by those organizations basically because they have to look after their own portfolios world-wide and I think that is primarily the issue for that so it is not really related to the performance of the company, the company has performed exceedingly well." BUILDING
  • Embargoed: 28th February 2009 12:00
  • Keywords:
  • Location: Zambia
  • Country: Zambia
  • Topics: Communications,Economic News
  • Reuters ID: LVA2B99828SCU4FA8IWQUN59MZ5D
  • Story Text: Zain Zambia posts a 49.3 million US dollar net profit amidst reduced commodity prices, a weaker currency and higher fuel prices owing to the global financial downturn.
    Zambia's leading mobile service provider, Zain, has recorded a positive growth of 25 percent representing an increase in net profit of 49.3 million US dollars last year compared to 39.6 million in 2007.
    Zain, which listed on the Lusaka Stock Exchange -LuSE- last year, however noted that the growth was slightly lower than its forecast of 55.8 million.
    Management has attributed this shortfall to the depreciation of the local currency, the Kwacha, against other major international currencies in the last quarter of 2008.
    Chris Gabriel, Chief Executive for Zain Africa says the impact of the global economic crisis affected the last quarter of 2008, with reduced commodity prices, a weaker currency and higher fuel prices all affecting the trading environment.
    "There is an opportunity, in that acquisition targets historically are much more affordable, and so we are well placed to look at those. But again, we have to be astute, we have to make sure their value are accretive, and also because their value has come down in the market place. We need to make sure that the acquisitions we look at pay the right value. There are still companies that see their values up there but in reality, in market place, it's very low, so the time frame in terms of the negotiation process obviously extends out, but make no mistake, we are still committed to our growth objectives both organically and by acquisition, and are actively looking at other opportunities as we speak," said Gabriel.
    Zain Zambia, in June last year floated 20 percent of its shares on the local stock market and 50 per cent of the free float was taken up by Zambian institutional and individual investors.
    "When we went out for the IPO there was a large portion of the shareholding which went to external shareholders in particular, institutional shareholders and its most of that which has driven the share price where it is in terms of exiting by those organizations, basically because they have to look after their own portfolios world-wide, and I think that is primarily the issue so it is not really related to the performance of the company, the company has performed exceedingly well," said George Sokota, chairman of Zain Zambia's board.
    Zain Zambia has a subscriber base standing at 2.7 million, reflecting a market share of 73 percent.
    Zain, established in Kuwait in 1983, is among of the largest mobile and data service provider in the world and operates in 22 countries in the Middle East and Africa, providing service to over 60 million active customers.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register