Kuwaits runaway success story that is Zain announced on the Saudi bourse internet site that its Saudi based business unit, Zain Saudi Arabia, reduced its net loss for the second quarter in a row.
Net losses for the Riyadh-based mobile phone company (of which Kuwait’s biggest telecom provider, Zain has a 25% stake) fell from 765,000,000 Riyals 12 months ago, to 663 million Riyals. The reduction in net loss was largely attributed to cost reduction and increased revenue from new subscribers – producing an impressive 88% increase in revenue to 1.1 Billion Riyals.
Theres no doubt that the Saudi market is fertile for telecoms companies – the Saudi Communication and Information Technology Commission’s site tells us that there was an increase of 8.8 million mobile phone user to 44.8 million in 2009 and the number of broadband subscribers for increased by over 50% to 2.75 million.
Despite starting up in 2008, Zain Saudi Arabia, has recruited over 6 million subscribers by the end of November – representing a staggering 100% increase in the quarter.
Of the three major players in the Saudi telecom arena; STC, Etihad Etisalat Co (Mobily) and zain Saudi Arabia, Zain seems to be taking market share from STC as Saudi Telecoms Company announced a 29% decrease in quarterly net income to 1.77 billion riyals – due to increased interconnection costs and cheaper international calls.