Zain Saudi Q1 Net Loss Narrows By 21 Percent

Zain Saudi Q1 Net Loss Narrows By 21 Percent

Zain Saudi said its first quarter loss narrowed by 21 percent from a year earlier due to lower operating costs, in line with analyst expectations.

April 17, 2012 3:38 by kippreport

Zain Saudi said its first quarter loss narrowed by 21 percent from a year earlier due to lower operating costs, in line with analyst expectations.

An affiliate of Kuwait’s Zain, Zain Saudi posted a loss of 420 million riyals ($112 million) in the three months to March 31, compared with a loss of 532 million riyals in the year-earlier period.

Analysts polled by Reuters had on average forecast Zain Saudi would post a quarterly loss of 410 million riyals.

Total profit was 702 million riyals, down from 716 million riyals in the corresponding period of 2011 while the operational loss for the first quarter was 191 million riyals, down from 233 million riyals, the statement said.

“The main reasons behind the narrowing of losses for the first quarter is the decline in operational costs by 7 million riyals,” it said.

Zain Saudi, which has yet to be profitable four years after launching, appointed Fraser Curley as chief executive in March, its third CEO in six months.

That month, Zain’s deputy chairman said it would guarantee any new issues made by Zain Saudi, which has a $2.5 billion Islamic syndicated loan due later this year.

(Reporting by Amena Bakr; Editing by Reed Stevenson)