- DUBAI: Kuwait's Zain blamed foreign exchange losses on Tuesday after the telecoms operator's third-quarter net profit fell 13 percent to miss analysts' estimates.
The former monopoly made a net profit of 70 million dinars ($254 million), according to Reuters calculations. This compares with a profit of 80.31 million dinars in the same period a year ago.
Analysts polled by Reuters on average expected the firm to post a quarterly profit of 71.91 million dinars.
Zain, which holds mobile licenses in seven countries including Saudi Arabia, Sudan and Iraq, made foreign exchange losses of $25 million in the three months to Sept. 30.
The operator's quarterly revenue was 329 million dinars, down from 337 million dinars a year ago.
"We have seen significant growth in broadband revenues particularly as a result of increased use of social networking sites and applications via smart phones and tablets," group Chief Executive Nabeel Bin Salamah said in a statement.
"The gap between voice and data revenues as a percentage of total company revenues is diminishing."
Zain's EBITDA (earnings before interest, taxes, depreciation and amortization) margin rose 1 percentage point to 45 percent in the first nine months of 2011 compared with a year earlier.
The operator said in a statement that it had 41.4 million customers at end-September, up 17 percent from a year ago.
Its shares closed 1.1 percent higher on Kuwait's bourse before the results were announced, trimming their 2011 losses to 38.2 percent.

