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Mobile Telecommunication Company Zain Saudi Arabia announced its financial results for the full financial year ending December 31, 2016.

Zain Saudi Arabia reported a 3% increase in revenues to reach SAR 6,927 million in 2016, up from SAR 6,741 million a year earlier. Gross profits for 2016 reached a record SAR 4,401 million increasing by 11% up from SAR 3,951 million in 2015, with an improved gross margin of 64% compared to 59% in the 12 months' period 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 2016 reaching 26% compared to 24% in 2015.

The Company significantly narrowed operating losses during the year 2016 by 61% to reach SAR 55 million, down from SAR 141 million in 2015. Net losses in 2016 increased by 1% in 2016, reaching SAR 980 million, up from SAR 972 million a year earlier.

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: "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 fourth quarter of the year."

Mr. Peter Kaliaropoulos, chief executive officer of Zain Saudi Arabia said: "In 2016, Zain Saudi Arabia was able to deliver healthy revenue growth and better margins; despite the challenging conditions and increasing competition in the Saudi telecom sector."

Regarding 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 in Q4 2016 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."

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