In the Q1 financial filing, Kuwait’s leading telecom service provider, Zain has registered a 9% year-on-year fall in its profit. However, the company has made a net profit of 37 million dinars ($123 million) in the three months to March 31, said the company release.
The Q1 revenue stood at 277 million dinars, slightly reduced from the 278.9 million dinars it registered in the same period in the previous year.
Zain had reported loss in profits in six of the preceding seven quarters. Challenging domestic competition, service interruptions and higher costs due to conflict in Iraq, and foreign exchange volatility are the reason attributed to the loss.
According to Zain, its Q1 foreign currency losses were primarily from Iraq and totaled $35 million, up from $7 million a year earlier. The decline in profit at its Iraqi subsidiary was huge, falling to $3 million from $34 million over the same period. Sudan’s quarterly profit too fell 28% and reached 195 million Sudanese pounds ($32 million).
Zain is Kuwait’s biggest telecommunications operator by subscribers. It operates in eight countries in the Middle East and Africa. In Kuwait, Zain competes with companies such as Ooredoo Kuwait and Viva.