Zain sees profits down

Kuwaiti telecoms giant Zain announced yesterday its net profit went down slightly in the second quarter of the year. In a statement quoted by AFP, Zain says its net profit in the second quarter decreased 3% to hit 59.1 million dinars ($ 210.1 million), against 61 million dinars ($ 217 million) during the same period of 2013.

But the revenues of the largest mobile operator in Kuwait increased in the first six months of the year by 2% to 115 million dinars ($ 409.2 million) against 113 million dinars ($402.1 million) in the first half of 2013, according to the statement. “It is encouraging to see an increase in customers and revenues in many of our core business as a direct result of significant investments in the modernization and expansion of our networks,” said Zain President Assad al-Banwan.

During the past 12 months, the company reported 2.1 million new customers, bringing by the end of June to 46.5 million the number of subscribers in eight countries. Besides Kuwait, Zain also operates in Bahrain, Iraq, Jordan, Lebanon, Saudi Arabia and Sudan. It also manages a unit in Morocco.

Zain has suffered losses during the last three years due to fluctuations in exchange rates, particularly in Sudan, and new investments for expansion.

Zain, which the Kuwaiti government owns nearly 25% of it, is the third mobile operator in Kuwait, alongside the National Telecommunications Co (Wataniya) and Kuwait Telecommunications Co., AFP reported.

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