Zain Group posts flat second quarter profit

07/08/2017 05:28 AST

Zain, Kuwait's biggest telecom operator by subscribers, reported flat second-quarter profits on Sunday.

The former monopoly, which operates in eight countries in the Middle East and Africa, made a net profit of 44 million dinars ($146 million) in the three months to June 30, it said in a statement. That compared with a profit of 44.7 million dinars in the year period last year.

EFG Hermes had forecast a net profit of 39.87 million dinars, while SICO Bahrain forecast a net profit of 36.75 million dinars.

Zain said in a statement that foreign currency conversions, mainly in Sudan, had cost the company $58 million in the first six months of 2017. Second-quarter revenue was 261 million dinars, down from 274.9 million dinars a year ago.

In Kuwait, Zain competes with Ooredoo Kuwait, a unit of Qatar's Ooredoo, and Viva, an affiliate of Saudi Telecom Co (STC).

Zain is also trying to sell its transmitter towers in Saudi Arabia and Zain Saudi, 37 percent-owned by Zain Group , said on Sunday it had entered into exclusive talks with a consortium led by IHS Holding Limited and Towershare Management Limited for the sale and lease back of its mobile towers.

The talks have been granted exclusivity until Sept. 28, though there is no binding agreement or certainty that negotiations will lead to a transaction and regulatory approval would be required for any deal, Zain Saudi said in a bourse statement.

Zain Saudi said in December it was in talks to sell the towers to a consortium comprised of TASC SAL and ACWA Holding.

Zain Group Chief Executive Scott Gegenheimer said in November that the group expected the mobile towers in Saudi to sell for over $500 million in the first half of 2017.

Zain Saudi has been exploring the sale of its towers since as early as January 2015.

Saudi Gazette