Global Investment House Q1 loss narrows
Kuwait City, May 17, 2010
Kuwait's Global Investment House narrowed its net loss as expected in the first quarter and could move into profit in the second period with a boost from advisory fees.
The firm, one of Kuwait's biggest investment firms, is advising India's Bharti Airtel on its $9 billion deal to buy most of the African telecoms assets of Kuwait's Zain and expects to book revenues from the transaction in the second quarter.
'They will benefit from the Zain deal and most likely they could emerge from losses and post a small profit in the second quarter,' said Mustafa Behbehani, director at Gulf Consulting Co in Kuwait.
Global posted a net loss of 14.2 million dinars ($49 million) compared with a forecast from Shuaa Capital for a loss of 15 million dinars and versus a loss of 69.5 million in the same period last year.
'We are now focusing all our efforts on developing the fee-generating lines of our core business, namely the asset management, investment banking and brokerage pillars of the company,' Maha Al-Ghunaim, Global's chairwoman and managing director said in a statement.
The firm's fee-based businesses, which include asset management, investment banking and brokerage, generated a net profit of 2.2 million dinars in the quarter, Global said.
Losses from principal investments and treasury activities were 16.8 million dinars. Global's total assets stood at 799.8 million dinars at end-March, down from 1.19 billion dinars a year earlier. Shareholders equity came in at 145.8 million dinars in the first quarter. Global shares closed up 1.2 percent on the bourse on Monday after results were announced. - Reuters