Zain Saudi Arabia narrows loss

19 January 2012

Mobile operator announces fourth-quarter results

Zain KSA, the Saudi subsidiary of Kuwait-based telecoms operator Zain Group, made a net loss of SR461m ($122.9m) in the fourth quarter of 2011, a decrease of 11 per cent. when compared to the same period in 2010.

In a statement posted on the Saudi Arabian Stock Exchange (Tadawul) website, the company attributed the decrease in net loss to the fall in costs of international calls termination and to the lower network maintenance costs.

Full-year revenue for the operator amounted to SR6.7bn in 2011, an increase of 13 per cent when compared to 2010.

Zain KSA’s total loss now amounts to SR9.6bn, about 60 per cent of the company’s SR14bn share capital.

In September 2011, a joint bid from Bahrain Telecommunications Company (Batelco) and Saudi Arabia’s Kingdom Holding withdrew a $950m bid for Zain Group’s 25 per cent stake in the Saudi operation.

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