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Zain Q2 profit falls 2 per cent

July 17, 2014



Data revenues, which accounted for 15 per cent of total group revenues, climbed 21 per cent in the first half of the year.



Zain, Kuwait's No.1 telecoms operator by subscribers, reported a two per cent retreat in second-quarter net profit on Wednesday, its sixth quarterly decline in the past eight quarters, in line with analysts' expectations.







The former monopoly, which operates in eight countries in the Middle East and Africa, made a net profit of 59 million dinars ($209 million) in the three months to June 30, down from 60.65 million dinars in the same period last year.







The figure was in line with the average forecast of analysts polled by Reuters, who expected a quarterly profit of 59.22 million dinars. Zain made a first-half net profit of 115 million dinars, up three per cent from last year, Zain said in a statement. Data revenues, which accounted for 15 per cent of total group revenues, climbed 21 per cent in the first half of the year.







The company had posted falling profits in five of the preceding seven quarters as tougher competition at home and a steep drop in the value of Sudan's currency, where it is the biggest operator, weighed on the bottom line.







Foreign exchange losses in Sudan and Iraq, which contributes 35 per cent of Zain's total customer base and 39 per cent of group revenue, cost the company $31 million during the second quarter, the statement said.












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Source: Khaleej Times (United Arab Emirates)


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