ZAIN KSA
7030
7030
Al-Rajhi Capital has stated in a report that Saudi Zain posted strong Q1 figures as both its operating and bottom-line performances improved significantly.
Net loss came in at SAR 318 million in Q1-14 (SAR 398 million in Q1-13), which is slightly better than estimates (SAR 334 million), but beat consensus estimate by a wide margin (net loss of SAR 392 million).
The research firm expected the company’s performance to continue on a steady path of improvement. However, the launch of MVNO services over the next few quarters may lead to customer churn and a drop in ARPUs, which would affect the operating performance of Zain.
Al-Rajhi Capital reiterated its ‘Neutral’ rating, with a target price of SAR10 per share.
Net loss came in at SAR 318 million in Q1-14 (SAR 398 million in Q1-13), which is slightly better than estimates (SAR 334 million), but beat consensus estimate by a wide margin (net loss of SAR 392 million).
The research firm expected the company’s performance to continue on a steady path of improvement. However, the launch of MVNO services over the next few quarters may lead to customer churn and a drop in ARPUs, which would affect the operating performance of Zain.
Al-Rajhi Capital reiterated its ‘Neutral’ rating, with a target price of SAR10 per share.
Source:
Mubasher
