Kuwait’s Zain net profit down 13 percent in Q3
04 Nov 2014
(MENAFN) Zain, Kuwait’s No.1 telecom operator by subscribers, reported it has registered a 13 percent fall in its profit during the July-September period of this year, posting a profit of USD158.4 million compared to USD182.20 million during the same quarter last year, Arabian Business reported.
Zain, which operates in eight countries in the Middle East and Africa, has posted a fall in its profits in six of the previous eight quarters due to tougher competition in Kuwait as well as its service suffering interruptions in war-torn Iraq.
The loss in profits also happened due to high drop in the value of Sudan’s currency resulting in the company posting losses in foreign exchange of USD52.4 million during the third quarter of this year compared to losses of USD21.4 million during the same period in 2013.
Zain said that during the first nine month of this year its net profit fell 2 percent to USD553.49 million, while its revenue reached USD3.16 billion.
During the January-September period, Iraq, which is Zain’s most important unit accounting for 30 percent of the company’s customers, accounted for 38 percent of revenue which dropped 4 percent to hit USD1.24 billion, while its net profit fell 14 percent to USD224 million.
In Kuwait, where it competes with Wataniya, a unit of Qatar’s Ooredoo, and Viva, an affiliate of Saudi Telecom Co (STC), Zain’s profit rose 4 percent to USD289 million during the first nine months of the year due to data income growing by 14 percent to account for nearly a third of revenue, which totaled USD935 million, while its revenue reached USD1.01 billion, declining from USD1.07 billion in revenue registered during the same period last year.