Zain Saudi Arabia reports a net loss of $608Mn in 2008
Zain Saudi Arabia anticipates its first positive Ebitda in 2010 after the kingdom’s third mobile operator reached a 7% market share in first four months of its operation, one of the top official revealed. The firm reported a net loss of 2.28 billion riyals ($608 million) in 2008. ‘In addition to 2 million active customers (by end December), the operating profit itself (in 2008), or the difference between costs of sales and revenues was positive,’ Chief Executive Marwan al-Ahmadi said.
‘We think these are positive results,’ he said. ‘We are still committed to achieving a positive Ebitda in 2010.’
The 2 million active users reached between August and the end of 2008 represented a 7% market share, he added.
‘We are talking about active subscribers, not users who do not generate revenues for the company. Anyone who does not recharge the account for 90 days is not considered,’ he said. Zain Saudi Arabia is in tough competition with Saudi Telecom and Mobily in which Emirates Telecommunications is the largest shareholder.
