Zain Saudi Net Loss Narrows 4% In Q4
Telecom operator Zain Saudi reported a 4 percent narrowing of fourth-quarter loss by 9 percent to SR1.749 billion, compared to SR1.925 billion in the same period a year earlier and to reduce the net loss of Q42012 by 4 percent to SR443 million, compared to SR461 million in the same quarter of the year earlier, it said in a statement Monday.
In a statement, the company attributed the narrowing loss to a decrease in financial charges.
As regards the decline in net losses in the fourth quarter of 2012 compared to the same quarter the year earlier, the company attributed it to the increase in the revenues by 13 percent to SR1.724 billion in Q42012 compared to SR1.530 during Q42011 as a result of the increase in sales’ activities during the Haj season together with improvement in the operational expenses, benefiting from scale economy and keeping a firm grip over the total operational expenses.
Quarterly gross profit was SR739 million, up from SR691 million a year ago.
Loss from operations widened by 23 percent to SR262 million, compared with SR213 million for the same quarter last year.
The company made a full-year loss of SR1.7 billion in 2012. This compares with a loss of SR1.93 billion a year earlier.
The firm extended the maturity of a SR9 billion ($2.40 billion) Islamic loan for another six weeks on Dec. 19, the sixth time it has deferred payment.
Parent firm Zain in July increased its stake in Zain Saudi to 37 percent from 25 percent after underwriting the affiliate’s capital restructuring.
Prince Hussam bin Saud bin Abdul Aziz Al-Saud, Chairman of the Board of Directors of Zain KSA, said that the current management of the company has followed a clear-cut strategy aiming at realizing an edge in the operational and financial performance of the Company, mentioning that Zain KSA receives full support from Zain Group.
He added that Zain KSA has well-defined goals, through which it pursues to bolster its operational and financial performance.
Prince Hussam said Zain KSA is assured and fully confident that the efficiency of its network and quality of its new innovative packages will verily help in achieving its future goals and plans.
Saudi Gazette
