JEDDAH: Telecom operator Zain Saudi has reported a narrowing third-quarter loss.

The company has yet to make a quarterly profit since launching services in 2008 and has battled to compete against Saudi Telecom Co. (STC) and Etihad Etisalat (Mobily).

Zain Saudi, 37-percent owned by Kuwait’s Zain, made a net loss of SR223 million ($59.5 million) in the three months to Sept. 30, according to a bourse filing.

This compares with a net loss of SR316 million in the prior-year period.

Four analysts polled by Reuters forecast Zain Saudi would make a quarterly net loss of SR216.9 million.

Zain Saudi said increased demand, better operational performance and higher gross margins helped reduce its net loss for the quarter.