Kuwaiti telco Zain’s profits fall 39 per cent in 2009
01 Apr 2010
Kuwait's Zain telecom on Thursday said the global economic downturn had hit its net profits for 2009 which was down 39.4 per cent. It added it posted a small fourth quarter loss for the year.
Zain operates in 23 African nations and the Middle East and reported in a statement 195 million dinars ($677 million) in net income in 2009 as against 322 dinars ($1.11 billion) the previous year.
The Kuwaiti telco this week signed an agreement for the sale of its African assets to Bharti Airtel for $10.7 billion. It posted a $2.4-million loss in the fourth quarter last year as against a profit of $300 million in the fourth quarter of 2008.
According to the statement, annual earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 24 per cent to 926 million dinars.
Earnings per share was 0.051 dinars (around 18 cents) in 2009 as agaist 30 cents in the previous year.
According to chairman Asaad al-Banwaan, last year had been the most difficult with companies of the group operating under the pressure of the global financial crisis and most markets being severely impacted by the fallout, especially the African markets.