Zain Saudi says net loss narrows during Q3

Telecom operator delivers upbeat message just a day after chief executive resigns.
Zain KSA cuts its losses in Q3.
Zain KSA cuts its losses in Q3.

Share

Telco Zain Saudi on Wednesday said that its third-quarter net loss narrowed as call volumes increased.

The operator made a net loss of SR484m ($129m) in the third quarter, compared with SR544m a year earlier, the company said in a statement.

Prince Hussam bin Saud bin Abdul Aziz, chairman of Zain Saudi, said: "The financial results for the period reflect the company's ability to continue to grow and achieve record financial levels in accordance with the ambitious targets and strategic plans set when the company commenced commercial operations, despite the very competitive and saturated market conditions."

He added that the quarter had seen many achievements, notably the launch of 4G LTE high-speed internet technology in the kingdom.

The chairman also said the company was "winning the race to reach all its goals, and is expected to surpass all previous landmarks".

On Tuesday, Saad al-Barrak quit as chief executive and was replaced by a US-educated veteran from its Kuwait parent Zain, two weeks after a proposed deal to sell 25-percent stake in the Saudi operator fell through.

"The decrease in net loss is due to the sizable expansion in company's customer base, noticeable rise in calls volume, and the increased demand of broadband services within the company's own network," the statement said.

The latest results means Zain Saudi's accumulated losses now stand at about SR9.2bn. It must complete a capital restructuring to alleviate these losses and comply with Saudi bourse rules.

Zain Saudi shares have fallen 23 percent year-to-date.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story