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Zain telecom swings to Q4 loss

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CIOL Bureau
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KUWAIT: Kuwaiti mobile operator Zain swung to a fourth-quarter loss of 0.7 million dinars ($2.4 million), according to Reuters calculations, compared with a net profit of 86.83 million dinars a year earlier.

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The company posted an annual net profit of 195 million dinars ($675.2 million) in 2009, it said in a statement, down from 322 million dinars in the previous year.

"The biggest challenge was strong currency fluctuations which cost Zain around 38 million dinars and this is what pressed down the size of net profit," Zain chairman Assad al-Banwan said in the statement.

The statement gave no quarterly figures, which Reuters calculated based on previous financial data.

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Two analysts surveyed by Reuters had expected net profit ranging from 61 million to 70 million dinars in the fourth quarter.

Annual earnings before interest, taxes, depreciation and amortisation rose 24 percent to 926 million dinars, the statement said.

Annual earnings per share fell to 51 fils from 88 fils in 2008. There are 1,000 fils to the dinar.

The board proposed a cash dividend of 170 fils per share, excluding distribution from the sale of some of Zain's African assets to Bharti Airtel Ltd, the statement said.

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