Zain's Profits Hurt by Competition and Currency Losses
Published on: 11th Nov 2013
Note -- this news article is more than a year old.
Kuwait based Zain has reported that its third quarter revenues were flat compared to a year ago despite rising customer numbers.
Revenues came in at USD1.1 billion, while EBITDA fell by 4% to US$471 million. Net profits were also down, by 12 percent to USD186 million.
The declines were primarily put down to problems with its Sudan subsidiary, particularly the weak currency.
Zain added 3 million new customers over the last twelve months to serve 44.3 million as of 30 September 2013, reflecting a 7% growth rate.
Zain Group CEO, Scott Gegenheimer noted, "Unavoidable foreign currency fluctuations continue to affect us adversely, however we are unwavering in our transformation efforts in this changing telecom environment that is characterized by intense competition not only from mobile operators but also from over-the-top (OTT) players such as Skype, Facebook and Viber, to name a few."