Zain Saudi to focus on reducing high-cost debt, says CEO

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) CEO Peter Kaliaropoulos said the company was not satisfied with the current level of high-cost debt and will be focusing on improving the cost structure and enhancing profitability in the second half of this year.

He told CNBC Arabia in an interview that the company intends to be more cautious about the cost structure and get rid of high cost debt. Zain Saudi’s cash flow stands at SAR 1.8 billion, he said, adding that the telecom operator’s market share was between 22-23 percent.

Zain Saudi turned to a net profit of SAR 53 million in the first half of 2017, compared to a net loss of SAR 578 million in the same period last year.

The firm is currently negotiating towers sale with interested potential buyers and plans to use all the revenues from the sale for paying debts, he said.

Data services represent the future of the sector’s growth, he said, adding that it generates more than 50 percent of the company’s revenues.

As for the fingerprint verification system, the telecommunications sector lost more than 6.5 million sim cards in the past months as a result of implementing the system, he added.