Zain Saudi Q2 net loss widens, misses forecasts
Telecommunications operator Zain Saudi reported a wider second-quarter loss on Thursday, missing analysts’ forecasts.
The company has yet to make a quarterly profit since launching services in 2008 and has battled to compete against better-resourced rivals Saudi Telecom Co and Etihad Etisalat (Mobily).
Zain Saudi, 37 percent owned by Kuwait’s Zain, made a net loss of 329 million riyals ($87.8 million) in the three months to June 30 compared with a loss of 201 million riyals in the prior-year period.
Three analysts polled by Reuters had on average forecast Zain Saudi would make a quarterly net loss of 222.1 million riyals.
The firm said its losses were mainly driven by spending on its network infrastructure, the cost of new biometric fingerprint identification regulations, and an increase in the cost of financing.