Zain Saudi Q4 Net Loss Narrows, Beats Forecasts
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Zain Saudi Q4 Net Loss Narrows, Beats Forecasts

Zain Saudi Q4 Net Loss Narrows, Beats Forecasts

The company has yet to make a quarterly profit since launching services in 2008.

Gulf Business

Telecom operator Zain Saudi reported a narrowing fourth-quarter loss on Wednesday, beating analyst forecasts due to higher demand for internet services and lower maintenance costs.

The company has yet to make a quarterly profit since launching services in 2008 and has sometimes struggled to compete against better-resourced rivals Saudi Telecom Co (STC) and Etihad Etisalat (Mobily).

Zain Saudi, 37-per cent owned by Kuwait’s Zain, made a net loss of SAR306 million ($81.5 million) in the three months to Dec. 31. This compares with a net loss of SAR462 million in the prior-year period.

Analysts polled by Reuters on average forecast Zain Saudi would make a quarterly loss of SAR388.5 million.

The company made an annual loss of SAR1.27 billion in 2014. That compares with an annual loss of SAR1.65 billion a year earlier.

Zain Saudi has rejected a $586 million claim from Mobily relating to a service agreement between the two operators, with the dispute set for arbitration.


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