The profits of telecom companies listed in Kuwait Stock Exchange (EGX) fell by 28 per cent in the first half of 2015, according to a survey by Egypt-based Mubasher.
Four companies share the telecom market in Kuwait, including Zain, Viva, Hits Telecom and Ooredoo. The survey shows that the profits of the four companies fell to approximately KWD63.11 million, compared with KWD87.62m in the same period of 2014.
Financial analysts say the decline in profitability of the Kuwaiti telecom companies was driven by the fall in the profits of Ooredoo and Zain.
Adnan Al-Dulaimi, a financial analyst who echoes a similar view, says: “The most prominent factors affecting the sector during the first half of the year were the high volatility in the global currency, the fierce competition between the telecom operators and the decline in capital investments.”
According to analysis, Ooredoo profits slid 61 per cent to KWD14.8m and Zain profits fell by 30.4 per cent to KWD80m.
Meanwhile, Hits Telecom turned to profitability in the first half of the year, as it posted KWD473,000 and Viva’s profits jumped 14 per cent to KWD21.58m.
(KWD1 = AED12.15, at the time of publishing)