Zain KSA says break-even no longer far; leverage stands at SAR 14 bln

Mobile Telecommunications Co. Saudi Arabia (Zain KSA) is marching ahead with its three-year plan to reach a break-even point and turn profit, said chief executive Hassan Kabbani.  

“The company is in final stages to amortize license losses,” he told CNBC Arabia in a phone call. 

“Zain KSA’s assessment of the local market was different at the time of licensing; however, as a third player, we had no opportunity to roll out unique 4G services,” he added. 

The mobile operator’s long-term and rescheduled debts reached SAR 14 billion. Zain KSA is well-placed to fulfill outstanding liabilities, Kabbani added.

Referring to its row with Etihad Etisalat Co. (Mobily) over the SAR 2.2 billion owed by Zain KSA, Kabbani said: “The arbitration panel will give rights back where they belong.”

“Our cooperation with Mobily was not of that magnitude as it claimed. We adopt the highest standards of transparency,” he added. 

Mobily is currently seeking arbitration over the application of a 2008 contract under which Mobily provided domestic roaming and site sharing services to Zain Saudi, which launched its commercial operations that year.

Zain KSA has rejected Mobily’s claim, and said it only owes around SAR 13 million.

Their next arbitration session is scheduled for May 23.