Zain Saudi Arabia Reports Strong Financial Results for the Fourth Quarter of 2016

Riyadh, Saudi Arabia (ots/PRNewswire) -

- Quarter highlighted by revenues increasing 8%
- Net losses narrowed by 54% in Q4
- The High Order awarding of a 15-year license extension and unified
license is set to support Company's growth strategy

Mobile Telecommunication Company Saudi Arabia (Zain Saudi Arabia)
announced its financial results for the fourth quarter ending
December 31, 2016.

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(Photo:
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Key Performance Indicators for the fourth quarter (Q4) of 2016:

Compared to Q4, 2015, Zain Saudi Arabia reported:

- Revenues of SAR 1,801 million, up 8%
- Gross profit of SAR 1,142 million, up 7%
- EBITDA increased by 21% YoY, reaching SAR 490 million
- Net losses by 54% to reach SAR 135 million

Key Performance Indicators for the 12 months ending 31 Dec 2016:

Compared to Full-Year 2015, Zain Saudi Arabia reported:

- Revenues increased by 3% to SAR 6,927 million,
- Gross profit grew by 11% to SAR 4,401 million.
- EBITDA also grew by 10% to a level of SAR 1,795 million
- Steady net losses up by 1% to SAR 980 million

Zain Saudi Arabia reported an 8% increase in revenues to reach SAR
1,801 million in Q4 2016, up from SAR 1,672 million a year earlier.
Revenues for the twelve-months of 2016 grew by 3% reaching SAR 6,927
million, up from SAR 6,741 million for the same period in 2015.

Gross profits for Q4 2016 reached SAR 1,142 million, up 7%
compared to SAR 1,065 million in Q4 2015, and up 8% compared to SAR
1,061 million in Q3 2016. The Company reported steady gross margin at
63% compared to 64% during Q4 2015, whilst gross profits during the
twelve-month period reached a record SAR 4,401 million increasing by
11% up from SAR 3,951 million during the same period of last year,
with gross margin of 64% improved compared to 59% the previous 12
months' period.

The Company reported a significant 21% increase in EBITDA in Q4,
2016 to reach a record SAR 490 million, up from SAR 405 million
during the same quarter of 2015. EBITDA for the 12 months of 2016
amounted to a record SAR 1,795 million, up 10% on SAR 1,629 million
recorded in the same period of 2015.

EBITDA margin rose in Q4 2016 to 27% compared to 24% in Q4 2015,
while reaching 26% for the twelve months of 2016 compared to 24% in
2015.

The Company recorded an operating profit of SAR 87 million during
Q4 2016, up from a loss of SAR 82 million in the same quarter in
2015, Q4 2016 includes the incorporation of the relevant amortization
savings associated with the 15-year license extension.

Net losses for Q4 2016 were narrowed by 54% to SAR 135 million,
down from SAR 291 million during Q4, 2015, and by 49% compared to SAR
267 million in Q3 2016 reflecting the lowest net loss since
inception. Net losses for the twelve-month period increased by 1% in
2016, reaching SAR 980 million, up from SAR 972 million a year
earlier.

The fourth quarter also marked the end of the arbitration process
between Zain and Mobily, with the final judgement of the arbitration
panel being fully provided in the accounts.

Commenting on the results, HH Prince Naif bin Sultan bin Mohammed
bin Saud Al Kabeer, Chairman of the Board of Directors of Zain Saudi
Arabia said, "Q4 2016 marked the most significant development for the
Company since inception, following the High Order announced on
October 1st, to extend the Company's license by 15 years and upgrade
it to a unified license. The extension of the license decreased the
amortization charge by SAR108 million during the quarter."

HH added, "I would like to thank the Custodian of the Two Holy
Mosques and the Government for this decision which, in line with
Vision 2030, will enhance the competitiveness of the sector and
enable it to play an important role in the development of the
economy."

Mr. Peter Kaliaropoulos, Chief Executive Officer of Zain Saudi
Arabia said, "Despite increased competition and challenging
conditions in the Kingdom's telecom sector, Zain delivered healthy
revenue growth and better margins for the quarter and year-on-year."

"The important and necessary biometric identification requirement
which Zain is fully committed to, whilst adversely affecting the
total customer base of all industry operators, it also provided the
opportunity to gain new, first time to Zain, customers. We will
continue to deliver better value and quality to consumers and
businesses through ongoing investment in our network and innovative
voice and broadband offers." added Mr. Kaliaropoulos.

Commenting on the High Order to extend the Company's license and
grant it a unified license, Mr. Kaliaropoulos said, "The Company's
net losses have decreased significantly due, in part, to the impact
of the extension of our license and growth in revenues. The upgrade
of the license to a unified license will enable the Company to
introduce a wider range of telecommunications services, including
fixed services, leveraging Zain's network and that of new partners.
Customers across all sectors will increasingly have more choice for
broadband services to the home and communications solutions for their
business."

"The efforts of the entire Zain team in Saudi Arabia, and the
continued support from the Board of Directors, our shareholders and
Zain Group, are sincerely appreciated. We will continue to face very
tough market challenges in 2017 and we need to remain clearly focused
and continually improve all aspects of our operations." concluded Mr.
Kaliaropoulos.

https://www.sa.zain.com/autoforms/portal/site/zainsa/news/news201?
AF_language=en

ots Originaltext: Zain Saudi Arabia
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Bander Saeed Alghamdi
Corporate Communications Director
Bander.alghamdi@sa.zain.com
+966 59 241 0088

Original-Content von: Zain Saudi Arabia, übermittelt durch news aktuell