Kuwait-based operator group Zain’s third-quarter results were hit by foreign currency fluctuations which offset an increase in data revenue for the period.

Zain’s substantial investments in 3G and LTE networks drove a 22 per cent year-on-year increase in data revenue, which accounted for 13 per cent of total revenue.

Despite this boost, the group generated $1.1 billion in revenue during the third quarter, little change from Q3 2012, and recorded a net income of $186 million, down 12 per cent year-on-year.

Without the $41 million impact of adverse foreign currency fluctuations, predominantly in Sudan, group revenue would have risen by 3 per cent. Net income was hit by foreign currency fluctuations to the tune of $7 million, along with an exceptional loss of $21 million from foreign currency revaluation.

The weakening Sudanese pound was also blamed for a decline in net income and revenue for the first half of the year.

Zain now has 44.3 million customers — up 7 per cent on the same period in 2012 — after adding three million subscribers over the past 12 months. The company is the market leader in terms of subscribers in six of the eight markets in which it operates.

For the first nine months of the year, Zain saw strong subscriber growth in Bahrain (29 per cent), South Sudan (21 per cent) and Saudi Arabia (19 per cent).

“Across all our markets, operationally we are performing well in local currency terms as we drive efficiency and innovation in unity with a concerted effort to improve the mobile experience for our customers,” noted Scott Gegenheimer (pictured), Zain Group CEO.

Gegenheimer added that with 3G spectrum expected to be awarded in Iraq, combined with the rollout of LTE in Kuwait, Bahrain and Saudi Arabia, the group is confident it can continue to grow data revenue.

“With a solid 44.3 million plus customer base that continues to grow, coupled with robust growth in data revenues supported by our state-of-the-art mobile broadband networks across our geographies, we are confident the company will continue to overcome challenging market conditions and produce positive results,” said Asaad Al Banwan, chairman of Zain’s board of directors.