By Mouaz bin Saad – Mohamed Al Araby

Riyadh-Mubasher: Ali Al-Zahrani, CEO, Money & Business Training Center (MBTC) said telecom operator Zain KSA took the capital reduction move as its only option to amortize its accumulated losses.

The telecom company’s shareholders have approved the reduction in capital to SAR 5.8 billion.

According to the analyst, the effectiveness of such a move would not be measured before seeing the results of the upcoming two quarters, especially as the company is now operating with no accumulated losses.

The telco is able to record strong revenues, especially after the decision of Communications and Information Technology Commission (CITC) to cut call connection fees by 40%, which will boost the company’s earnings gradually, Al-Zahrani said.

He expected Zain KSA to see steady earnings and revenues after two years.

Translated by Sayed Abdel Rahman