Zain Saudi cuts accumulated losses to 38% of capital

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) has cut its accumulated losses by 0.78 percent from SAR 2.3 billion in Dec. 2016 to SAR 2.2 billion in Q1 2017, representing 38 percent of its capital, the telecom operator said in a statement to Saudi bourse, Tadawul.

These losses were attributed to the tough market conditions, higher cost of debt, and increased amortization charges.

The Saudi mobile services provider mapped out a number of restructuring procedures to boost growth and curb losses, including raising revenue and gross profit by introducing higher-quality products.

The company also plans to negotiate with the government on reducing interconnection charges and extending the license term.

The Saudi telco will be subject to the CMA’s new rules governing listed companies with accumulated losses of more than 20 percent of their capital, as of April 22, 2017.