Telecom operator extends sustained earnings slump after making net profit of $128.8m during quarter
Zain, Kuwait's biggest telecom operator by subscribers, reported a 33 percent fall in second-quarter profit on Wednesday, extending a sustained earnings slump as difficulties in Iraq and a strong dollar hurt earnings.
The former monopoly, which operates in eight countries in the Middle East and Africa, made a net profit of 39.2 million dinars ($128.8 million) in the three months to June 30, it said in a statement.
This compares with a profit of 58.8 million dinars in the year-earlier period, previous financial statements show.
Zain had posted falling profits in nine of the 11 preceding quarters as tougher domestic competition, service interruptions and higher costs in war-torn Iraq and foreign exchange volatility in some markets weighed on the bottom line.
Zain said currency losses, mainly due to a strong dollar, had trimmed its half-year profit -- which fell 30 percent year-on-year to 80 million dinars -- by $13 million.
Zain Iraq, which listed on Baghdad's bourse in June, made a net profit of $60 million on revenue of $604 million in the first half. This compares with profit and revenue of $165 million and $856 million respectively a year earlier.
Domestically, Zain's half-year revenue was $544 million and net income $166 million, both down 16 percent according to Reuters calculations.
Last month affiliate Zain Saudi, in which Zain owns a minority stake, reported a narrowing quarterly loss, while the parent firm's Sudan unit appears to have overcome longstanding currency-related troubles, posting a 31 percent rise in half-year net income to $78 million.For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.