01/05/2017 07:21 AST
Zain Bahrain, a leading telecom services operator in the kingdom, has registered a 45 per cent drop in its net profit for the first quarter which fell to BD503,000 ($1.3 million) from BD917,000 ($2.4 million) for the same period last year.
However, the telecom major's total revenues for the three-month period ending March 31, 2017 surged 14 per cent to BD18.3 million ($48.5 million) compared to BD16.1 million ($42.7 million) last year.
Zain Bahrain said it continues to invest heavily for developing innovative new product offerings in the kingdom for its ever-growing customers.
The mobile operator said its customer base stood at 845,000 at the end of Q1, up five per cent from 807,000 a year earlier.
Announcing the results, Zain Bahrain chairman Shaikh Ahmed bin Ali Al Khalifa said: "2016 was an exceptional year, with heavy investment in innovative new technologies and services that will enable the group to deliver an unsurpassed digital lifestyle to our customers."
"This has meant a decrease in net profits even as overall revenues have risen during this quarter, as we continue to develop the most competitive packages in the market and create new product offerings to transform the user experience, tap into unexplored niches, and create additional value for our shareholders," noted Shaikh Ahmed.
"This strategy will guide Zain Bahrain as it continues to face the pressures of intense competition and a highly saturated market," he added.
Its key achievements for the first quarter include the launch of the 21st Zain Experience Shop in the kingdom, at Wadi Al Sail Mall in Riffa, besides signing a number of key agreements with service providers to provide enhanced digital lifestyle products to customers.
Zain Group also joined hands with iflix, a leading Internet TV service for emerging markets, to set up a new venture, ‘iflix Arabia’, to bring its service to the Middle East and North Africa (Mena) region.
The commercial launch of iflix Arabia across the Mena region is planned for Q2 at which time iflix Arabia will offer Zain mobile customers an extensive range of thousands of TV shows, movies and more with Arabic and English subtitles, including many first run exclusives and award winning programs, it stated.
The group also inked an agreement with Yoyo, one of Turkey’s most innovative digital startups, to bring an exciting new car sharing concept to Bahrain.
The app allows users to book vehicles of their choice, unlock them via their smartphones or membership cards, and return them to designated locations after use, said the statement from Zain.
The service will be piloted in Bahrain in Q2 before being rolled out across the region. Once launched, it will enable Zain Bahrain to tap into a market that is forecast to hit as high as $30 billion worldwide by 2020, it added.
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