Zain expects better performance in 2018, says CEO

Saudi mobile telecom operator Zain expects 2018 to be a better year for business given less hostile market condition and closer coordination with parent Zain Group, Chief Executive Officer Peter Kaliaropoulos said.

In 2017, Zain managed to offset SAR 1 billion of losses incurred in the earlier year and to turn to profit by December 2017, despite tough competitive environment.

The telecom operator reported its first-ever positive annual net profit in 2017, attributing improved results to higher revenue and improved margins, despite "fierce competition in the telecom market and eroding customer base.”

"We believe this year will be transformational for Zain, given a closer alignment with Zain Group's strategic objective," Kaliaropoulos said.

The company spent SAR 1.1 billion on the upgrade of its infrastructure, which is expected to enhance demand for mobile data in 2018.

Zain posted a net profit after zakat and tax of SAR 12 million for fiscal year 2017, compared to a net loss of SAR 979 million a year earlier.