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Tue 17 Apr 2012 11:21 AM

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Zain Saudi Q1 net loss narrows by 21%

Firm posted loss of US$112m in Q1, compared with loss of US142m year earlier

Zain Saudi Q1 net loss narrows by 21%
Analysts polled by Reuters had on average forecast Zain Saudi would post a quarterly loss of SAR410m.

Zain Saudi said its first quarter loss narrowed by 21 percent from a year earlier due to lower operating costs, in line with analyst expectations.

An affiliate of Kuwait's Zain, Zain Saudi posted a loss of SAR420m (US$112m) in the three months to March 31, compared with a loss of SAR532m in the year-earlier period.

Analysts polled by Reuters had on average forecast Zain Saudi would post a quarterly loss of SAR410m.

Total profit was SAR702m, down from SAR716m in the corresponding period of 2011 while the operational loss for the first quarter was SAR191m, down from SAR233m, the statement said.

"The main reasons behind the narrowing of losses for the first quarter is the decline in operational costs by SAR7m," it said.

Zain Saudi, which has yet to be profitable four years after launching, appointed Fraser Curley as chief executive in March, its third CEO in six months.

That month, Zain's deputy chairman said it would guarantee any new issues made by Zain Saudi, which has a US$2.5bn Islamic syndicated loan due later this year.

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