Zain Saudi Arabia Reports Strong Financial Results for the Fourth Quarter of 2016 - Seite 2

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?
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ots Originaltext: Zain Saudi Arabia
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Contact:
Bander Saeed Alghamdi
Corporate Communications Director
[e-mail]
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