Kuwait’s Zain Q4 Net Profit Drops 35%, Misses Estimates

Zain Group, Kuwait’s No.1 telecom operator by subscribers, reported a 35 per cent drop in fourth-quarter profit on Sunday, short of two analyst forecasts.

The former monopoly, which operates in eight countries in the Middle East and Africa, made a net profit of KD33 million ($112.2 million) in the three months to Dec. 31, it said in a statement, without providing a year earlier figure. The company previously reported it made KD50.8 million in the same period of 2013.

Two analysts polled by Reuters forecast Zain would make a quarterly profit of between KD48.3 million and KD53.7 million.

The company said currency variations cost it KD12 million in the fourth quarter of last year, up from KD10 million the same period of last year.

Zain made a 2014 annual profit of KD194 million, without providing a year earlier figure. The company previously reported it made KD216.4 million in 2013.

Zain’s board proposed a cash dividend of 40 fils per share for 2014. This is lower than the 50 fils per share the company paid in 2013, according to Thomson Reuters data.