Zain Saudi Q4 net loss narrows by 4%

Telecommunications firm made net loss of US$118.1m during quarter

Indebted telecom operator Zain Saudi reported a 4 percent narrowing of fourth-quarter loss but still missed analyst forecasts, the firm said in a bourse statement on Monday.

Saudi Arabia's number three mobile company, an affiliate of Kuwait's Zain, made a net loss of SAR443m (US$118.1m) in the three months to December 31. This compares with a net loss of SAR461m in the prior-year period.

Analysts polled by Reuters on average forecast Zain Saudi would make a quarterly loss of SAR387m.

In a bourse statement, the company attributed the narrowing loss to a decrease in financial charges.

Quarterly gross profit was SAR739m, up from SAR691m a year ago.

Loss from operations widened by 23 percent to SAR262m compared with SAR213m for the same quarter last year.

The company made a full-year loss of SAR1.7bn in 2012. This compares with a loss of SAR1.93bn a year earlier.

Zain Saudi has struggled under mounting losses and multi-billion dollar debts.

The firm extended the maturity of a SAR9bn (US$2.40bn) Islamic loan for another six weeks on December 19, the sixth time it has deferred payment.

Parent firm Zain in July increased its stake in Zain Saudi to 37 percent from 25 percent after underwriting the affiliate's capital restructuring.


Market Performance

Zain - Saudi Arabia
0.3 4.26 (%)
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
How technology is changing the UAE

How technology is changing the UAE

Free wifi in public spaces and remotely monitoring utility use...

UAE enters the drone age of technology

UAE enters the drone age of technology

The UAE’s civil aviation authority last week said it would introduce...

How technology is revving up the future of driving

How technology is revving up the future of driving

Technology firms have been investing in autonomous driving for...

Most Discussed