JEDDAH: Telecom operator Zain Saudi said it narrowed losses in the first quarter as revenue rose and financing costs fell.
Saudi Arabia’s No.3 mobile company, an affiliate of Kuwait’s Zain, made a net loss of SR 398 million ($ 106.13 million) in the three months to March 31 versus a loss of 420 million in the year-ago period.
Analysts polled by Reuters on average forecast Zain Saudi would make a quarterly loss of SR 387.6 million.
The company, which has yet to make a quarterly profit since launching operations in 2008, often struggles to compete with Saudi Telecom Co. (STC) and Etihad Etisala (Mobily).
Zain Saudi attributed the narrowing first-quarter loss to rising income and lower financing charges, according to a bourse statement.
Quarterly revenue was SR 1.78 billion, up from 1.52 billion a year ago.
First-quarter financial charges fell to SR 171 million from 229 million a year earlier.
Zain Saudi has repeatedly extended the maturity of an SR 9 billion Islamic facility, which is now due on April 30. A separate $ 600 million loan is due a day later.
The terms of a new five-year facility to replace the Islamic loan are being finalized, Zain Saudi said in the statement, with the smaller loan also set to be refinanced.
Parent firm Zain in July increased its stake in Zain Saudi to 37 percent from 25 percent after underwriting the affiliate’s capital restructuring.
Zain Saudi narrows loss as revenues, costs improve
