Zain Saudi says losses narrow during Q1

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Zain Saudi reported a first-quarter loss on Wednesday which narrowed from a year earlier and beat analyst forecasts as the telecom operator cut costs and data revenue surged.

Saudi Arabia's No.3 mobile company, 37-percent owned by Kuwait's Zain, made a net loss of SR318 million ($84.8 million) in the three months to March 31 versus a loss of SR398 million a year earlier.

Analysts polled by Reuters forecast a loss of SR400 million on average.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) of SR300 million were up 45 percent.

The company attributed its improved performance to cost cutting in sales, distribution and marketing as well some changes to the depreciation of property and equipment.

In a separate emailed statement, Zain Saudi said mobile data revenue rose 68 percent in the first quarter but did not state its first-quarter revenue.

Zain Saudi has yet to make a quarterly profit since launching operations in 2008.

It made significant steps in easing its debt burden last 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.

Related:

Market Performance

Zain - Saudi Arabia
11.1
0.0 0.0 (%)
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!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
The politics of big data

The politics of big data

The UAE may be one of the fastest adopters of e-government initiatives...

Gateway to a new era

Gateway to a new era

Could Telr be the answer to start-ups’ prayers? The new three...

7 of the best accounting apps

7 of the best accounting apps

Tamara Pupic tracks down some of the best accounting apps on...

1
Most Popular
Most Discussed
  • 10
    UAE teens among the highest for obesity rates

    Everyone in UAE knows that biggest is best.

    UAE may not light up the international league tables in standard of living, education standards, press... more

    Friday, 29 August 2014 4:20 PM - Proud UAEer
  • 9
    Saudi Arabia seeks talks on hiring of Sri Lankan maids

    perhaps the unemployed saudi men or the millions of women who are not allowed to work could pick up a broom and start sweeping their own houses. more

    Sunday, 31 August 2014 3:28 PM - nice
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew