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UPDATE 1-Kuwait's Zain Group reports flat quarterly profit as revenue drops
May 2, 2017 / 1:31 PM / 6 months ago

UPDATE 1-Kuwait's Zain Group reports flat quarterly profit as revenue drops

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DUBAI, May 2 (Reuters) - Kuwaiti telecom group Zain reported a flat quarterly profit on Tuesday as its revenues were hampered by foreign currency translation.

The group, which operates in eight Middle East and African countries, made 38 million dinars ($124.88 million) in the three months to March 31, up 3 percent, it said in an emailed statement.

EFG Hermes had forecast a profit of 37.41 million dinars while SICO Bahrain had forecast a 32 million dinar profit.

Revenue fell 11 percent to 247 million dinars, which Zain said was largely attributed to a 59 percent currency devaluation in Sudan since November.

The impact of foreign currency translation cost the company $138 million in revenue and $32 million in income over the period, Zain said.

The operator said that intense price competition in Kuwait and additional operating costs to expand and upgrade the network had also impacted its financial performance.

Zain announced earlier on Tuesday it had submitted an offer to bid for Oman’s third mobile network operator license.

$1 = 0.3041 Kuwaiti dinars Reporting by Alexander Cornwell; editing by Jason Neely and Susan Thomas

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