Zain KSA, Saudi Arabia’s third mobile operator, saw its net loss deepen by 2% in Q3 compared to the same period last year.
The telco posted a net loss of SAR 493 million for Q3, compared to SAR 484 million for the same quarter last year, and compared to a net loss of SAR 394 million for the previous quarter, which represents an increase in net loss of 25%.
Zain KSA blamed the increased losses on the “rebalancing of significant volumes of traffic from international to national destinations”.
The telco’s gross profit amounted to SAR 712 million compared to SAR 870 million for the same quarter last year, which represents a decrease of 18%.
Losses from operations amounted to SAR 305 million, compared to SAR 222 million for the same quarter last year, which represents an increase in operating loss of 38%.
The company said that it has made significant progress in reducing its reliance on non-sustainable unstable revenue flows from international calling cards and has reduced its exposure to the “fierce price competition” and regulatory restrictions within the international calling segment.
Zain KSA added that it has obtained approval from the Murabaha Investors to extend its existing Murabaha Facility for additional two months ending on November 28, 2012.
“The Company believes that it will be successful in meeting its obligations in the normal course of operations and in its efforts to secure the necessary funding,” the company said in a statement.