Kuwaiti telecoms giant Zain said Tuesday its net profits rose in the third quarter and the first nine months of 2016 despite regional conflicts and currency fluctuations. The company's net profit in the third quarter increased 12 percent to 43 million dinars ($142.4 million) from 38.4 million dinars ($127.2 million) in the same quarter last year, it said in a statement.
Net income for the first nine months was up 5.0 percent to 124 million dinars ($410.6 million) compared with 118 dinars ($391 million) in the same period last year. The positive earnings come after repeated slides in net profit over the past few years, mainly due to currency fluctuations and civil unrest in Iraq, where the company has significant operations. Better-than-expected earnings from data services compensated for a drop in profits in other areas, the company said.
"It is pleasing to report growth in several key financial metrics for the third quarter and nine-month periods of 2016 given the company's exposure to conflict zones and currency fluctuations," chairman Asaad al-Banwan said. Consolidated revenues in the first nine months hit $2.7 billion, down 3.0 percent from $2.8 billion a year ago.
The company's customer base rose slightly to 45.8 million from 45.6 million last year. Zain is the largest mobile phone operator in Kuwait but also has operations in Bahrain, Iraq, Jordan, Lebanon, Saudi Arabia and Sudan. It manages a unit in Morocco. The Kuwaiti government holds a stake of almost 25 percent in the company, which is one of three mobile operators in the Gulf emirate, alongside National Telecommunications Co (Wataniya) and Kuwait Telecommunications Co (VIVA).