Zain Saudi Q3 net loss narrows
Riyadh, October 12, 2011
Telecoms operator Zain Saudi on Wednesday said third-quarter net loss narrowed as call volumes increased, but the results fell significantly short of analysts' forecasts.
The operator made a net loss of 484 million riyals ($129 million) in the third quarter, compared with 544 million riyals a year earlier, the company said in a statement to the Saudi bourse.
Analysts polled by Reuters on average forecast the indebted firm would make a loss of 346 million riyals.
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.
Third-quarter gross profit was 870 million riyals, up from 712 million riyals a year ago.
'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 9.2 billion riyals. It must complete a capital restructuring to alleviate these losses and comply with Saudi bourse rules. - Reuters