Zain sees robust proft this year
Kuwait, March 29, 2012
Kuwait-based telecommunications firm Zain expects its 2012 profits will be equal to or higher than last year's net profit of $1.03 billion, its chairman said on Thursday.
"It will not be less than last year," Assad Al-Banwan told reporters after a shareholder meeting when asked about this year's profit outlook.
Earlier, the company agreed to issue a dividend of 65 fils per share and said it would back a subscription by its Saudi affiliate.
Deputy chairman Abdulaziz Al-Nafisi said the company would guarantee any new issues made by Zain Saudi, its indebted affiliate. "We will guarantee the shares," he told the shareholder meeting.
Zain Saudi has said it wants to cut its capital by 66 percent to alleviate mounting losses and then issue 6 billion riyals of new shares. The new equity would be used to reduce bank debt and enahnce the operator's network, it said last year. - Reuters