Zain Saudi hasn’t restated earnings despite challenges, Kabbani says

Zain Saudi has not made restatements to its earnings, despite the challenging financial and commercial conditions it has faced, the company’s chief executive Hassan Kabbani told CNBC Arabia.

Zain Saudi was said to have not taken provisions yet as a result of its dispute with Etihad Etisalat Co. (Mobily).

Last December, Mobily made a SAR 2.2 billion claim against Zain, saying the amount was owed from a 2008 contract. The kingdom’s third-largest mobile operator has refuted the claim made against it.

According to Kabbani, Zain is now “on the right track” and should swing to profit soon as performance improves.

He lauded a recent decision from the Communications and Information Technology Commission (CITC) to reduce mobile termination rates (MTRs) among local operators. Saudi Arabia’s telecom regulator slashed rates by 40 percent, which he says allows investors to more choice.  

The telco has not obtained a fair share of voice services, Kabbani added.

Last week, Zain reduced its call rates to SAR 0.19 per minute to all networks in the kingdom, giving its customers a 45 percent discount from the previous off-network rate of SAR 0.35 per minute.

Argaam reported earlier this month on the company’s 26.6 percent fall in first-quarter profits. It did, however, beat estimates and lower its net loss to SAR 257 million during the period.