DUBAI: Zain, Kuwait’s No. 1 telecom operator, blamed a plunge in the Sudanese pound and other foreign exchange moves as it reported a fifth straight decline in quarterly profit yesterday.
The former monopoly, which operates in eight countries in the Middle East and Africa, made a net profit of KD53m ($187.2m) in the three months to September 30, according to a company statement. This compares with a net profit of 59.7 million in the year-earlier period. Analysts had on average forecast Zain would make a quarterly profit of KD55.1m.
Zain said its quarterly net profit would have risen slightly but for $28m in foreign exchange losses, mostly relating to Sudan.
“Unavoidable foreign currency fluctuations continue to affect us adversely,” Chief Executive Scott Gegenheimer said.
Sudan lost three-quarters of its oil reserves when South Sudan became independent in 2011, with the Sudanese pound falling by about two-thirds against the dollar on the black market since then.
Sudan accounted for 15 percent of Zain’s revenue in the first six months of 2013. Third-quarter revenue was KD313m. This compares with KD311m a year ago. Reuters
