Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces its Interim Financial results for the Period Ending on 30-06-2026 (Six Months)

Zain KSA reported a 60.6% year-on-year increase in net profit to SAR 204 million for Q2 2026, bringing the H1 2026 net profit to SAR 405 million (up 84.1% YoY), while quarterly revenue remained stable at SAR 2.65 billion despite a decline in handset sales.
Operational profit for Q2 2026 grew by 17.7% to SAR 359 million, driven by an improved revenue mix in the consumer 5G segment and an SAR 81 million reduction in expected credit losses (ECL) following the sale of written-off receivables by the Tamam subsidiary.
Profitability was further supported by a 7% reduction in quarterly finance costs due to debt profile optimization and the recognition of SAR 112 million in one-off income from the Universal Service Fund during the first half of the year.
Earnings per share (EPS) nearly doubled from SAR 0.24 to SAR 0.45 for the six-month period, as gross margins expanded by 3% to SAR 3.31 billion and total shareholders' equity rose to SAR 10.8 billion.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	2,651	2,654	-0.113	2,656	-0.188
Gross Profit (Loss)	1,654	1,625	1.784	1,659	-0.301
Operational Profit (Loss)	359	305	17.704	260	38.076
Net Profit (Loss) Attributable to Shareholders of the Issuer	204	127	60.629	201	1.492
Total Comprehensive Income Attributable to Shareholders of the Issuer	204	118	72.881	201	1.492
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	5,307	5,344	-0.692
Gross Profit (Loss)	3,314	3,211	3.207
Operational Profit (Loss)	619	579	6.908
Net Profit (Loss) Attributable to Shareholders of the Issuer	405	220	84.09
Total Comprehensive Income Attributable to Shareholders of the Issuer	405	203	99.507
Total Shareholders Equity (after Deducting Minority Equity)	10,826	10,460	3.499
Profit (Loss) per Share	0.45	0.24
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Zain KSA revenue reached SAR 2,651 million in Q2 2026 compared to SAR 2,654 million in Q2 2025. Revenue remained flat, reflecting top-line stability across revenue streams despite the decline in handsets sales during the quarter.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Zain KSA net profit reached SAR 204 million in Q2 2026 as compared to SAR 127 million in Q2 2025 with an increase of SAR 77 million. Zain KSA consolidated net income (after incorporating non-controlling interest) increased by SAR 75 million, reaching SAR 202 million in Q2 2026 compared to SAR 127 million in Q2 2025 representing an increase of 59%. Gross profit grew by 1.8% to SAR 1,654 million (up from SAR 1,625 million in Q2 2025) equivalent to SAR 29 million as a result of the revenue mix improvement mainly from consumer 5G segment. Total Opex (including ECL) increase of SAR 6 million mainly from: Opex increased by SAR 87 million; mainly from the network expansion and maintenance cost; offset by a decrease in expected credit loss (ECL) by SAR 81 million as a result of cash collection acceleration from Tamam sale of part of its previously written-off receivables with a net ECL positive impact of SAR 53 million. EBITDA growth of 3% equivalent to SAR 23 million reaching SAR 873 million in Q2 2026 vs. SAR 850 million in Q2 2025. Operational profit expanded by 17.7% from SAR 305 million to SAR 359 million mainly from the decrease of SAR 31 million in depreciation and amortization (mainly from fully depreciated assets) One-off income: The company recognized SAR 15 million income from Universal Service Fund during the current quarter. Reduction in finance costs: finance costs decreased by SAR 12 million (7%) due to the optimization of the company’s debt profile. It is worth mentioning that after excluding the one-off gains in this quarter, the net profit would have increased by 5% compared to Q2 2025.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Revenue remained stable quarter-over-quarter, indicating steady operational demand; recording SAR 2,651 million in Q2 2026 vs SAR 2,656 million in Q1 2026 with a revenue mix improvement mainly from B2B segment.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	Zain KSA net Profit for Q2 reached SAR 204 million vs. SAR 201 million in Q1 2026. Zain KSA consolidated Net profit (after incorporating non-controlling interest) increased slightly from SAR 201 million in Q1 2026 to SAR 202 million in Q2 2026 mainly due to: 1. Gross margin slight reduction of SAR 5 million. 2. Reduction in Opex (including ECL) of total of SAR 75 million mainly from: a. Cost reduction due to cost optimization initiatives of SAR 29 million. b. ECL reduction of SAR 46 million mainly from TAMAM. EBITDA increase of SAR 69 million in Q2 2026 vs. Q1 2026 reaching SAR 873 million as compared to SAR 804 million in Q1 2026. Operational profit improvement of SAR 99 million or 38% reaching SAR 359 million compared to SAR 260 million in Q1 2026 as a reflection of the EBITDA growth and the decrease in depreciation and amortization of SAR 29 million. Decrease in one-off income from SAR 98 million realized in Q1 2026 to SAR 15 million in Q2 2026 related to Universal Service Fund.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Zain KSA revenue for H1 2026 reached SAR 5,307 million compared to SAR 5,344 million for H1 2025 with revenue mix improvement despite the handset’s revenue decline witnessed in H1 2026.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Zain KSA net profit for the six-month period grew to SAR 405 million in H1 2026, up from SAR 220 million in H1 2025 reflecting a substantial growth of 84% (SAR 185 million increase). Zain KSA consolidated net profit (after incorporating non-controlling interest) reached SAR 402 million for the first 6 months as compared to SAR 220 million in H1 2025 mainly due to the following: Gross margin expansion: Gross profit for the 6-month period increased by 3% to SAR 3,314 million (vs. SAR 3,211 million in 6-month 2025) with an increase of SAR 103 million as result of the revenue mix improvement despite the handsets revenue decline. Total Opex increase of SAR 90 million including ECL decrease of SAR 55 million. EBITDA for the first 6 months reached SAR 1,676 million as compared to 1,664 in H1 2025 with an increase of 1% equivalent to almost SAR 13 million. Operating profit for the 6-month period increased by 7% to SAR 619 million (vs. SAR 579 million in 6-month 2025) as a result of depreciation and amortization decrease of SAR 27 million (mainly from fully depreciated assets). One-off income: The company recognized SAR 112 million income from Universal Service Fund during the current period. Reduction in finance costs: finance costs decreased by SAR 38 million (11%) because of the company cost of debt improvement. It is worth mentioning that after excluding the one-off gains in this period, the net profit would have increased by 8% compared to H1 2025.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	N/A
Reclassification of Comparison Items	N/A
Additional Information	Total CAPEX investment for the period amounted to SAR 178 million to further enhance the customer’s experience and the quality of the services. EPS Improvement: Earnings per share increased from SAR 0.24 to SAR 0.45.