Telco Zain Saudi says losses narrowed in Q3

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Zain Saudi, Saudi Arabia's third-largest telecoms operator, reported a narrowing loss for the third quarter on Sunday, missing analysts' forecasts, as its customer base rose by nearly a quarter.

It said in a bourse statement it made a net loss of SR421m ($112 million) in the three months to Sept. 30, compared with a net loss of SR493m a year ago.

Five analysts polled by Reuters on average had forecast Zain Saudi would make a quarterly loss of SR339m.

The company has yet to make a quarterly profit since launching operations in 2008, but has taken significant steps to ease its debt burden this year, in July extending a $2.3 billion Islamic loan facility at a lower profit rate.

It also agreed a deal with the government in June that would allow it to defer payment of licence-related fees, which could total around $1.49 billion over seven years, and appointed industry veteran Hassan Kabbani as chief executive in September.

Quarterly revenue rose by 7 percent to SR1.57bn from SR1.53bn a year ago. The company attributed its better performance to the 24 percent growth of its customer base and a 37 percent jump in data traffic.

Zain Saudi added in its statement that it had reduced its operating expenses by 22 percent compared to a year ago.

Related:

Market Performance

Zain - Saudi Arabia
9.45
0.01 0.11 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Dubai's smart palm tree technology revealed

Dubai's smart palm tree technology revealed

Smart Palms harness the sun's energy to allow people to look...

Revealed: the best Dubai Twitter accounts to follow

Revealed: the best Dubai Twitter accounts to follow

Live in Dubai and hoping to get in on the Twitter buzz? Here...

How to get the most out of social media, by Obama's 2008 campaign manager

How to get the most out of social media, by Obama's 2008 campaign manager

David Plouffe is credited with Barack Obama’s unlikely 2008 victory...

Most Popular
Most Discussed