STC Reports SAR 14,828M Net Profit in Year 2025
STC 7010.SA | 0.00 |
On 2026-02-17 15:33:59 (Saudi Time), Saudi Telecom Company (stc) announced its annual financial results for the year ended on December 31, 2025.
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 77,819 | 75,893 | 2.54 | ||
| Gross Profit (Loss) | 37,700 | 37,326 | 1 | ||
| Operational Profit (Loss) | 14,438 | 14,426 | 0.08 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 14,828 | 24,689 | -39.94 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 14,854 | 24,437 | -39.22 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 83,414 | 89,417 | -6.71 | ||
| Profit (Loss) per Share | 2.97 | 4.95 | |||
| 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 year compared to the last year | stc achieved revenues of SAR 77,819m, with an increase of 2.5%, which was mainly attributed to the increase in commercial unit revenues by 3.4%, carriers and wholesale unit revenues by 10.8%. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
stc reported a net profit of SAR 14,828m. The net profit growth reached 12.5%, when excluding the non-recurring items, which was mainly attributed to the following:
- The gross profit reached SAR 37,700m as compared to SAR 37,326m (the growth of gross profit was 5.2% if non-recurring items were excluded, as the withholding tax provision of SAR 1,500m was reversed in the cost of revenues in the last year).
- The operating profit reached SAR 14,438m as compared to SAR 14,426m (the growth in operating profit was 6.6%, if non-recurring items were excluded).
- Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) stands at SAR 24,469m as compared to SAR 23,951m (the growth in EBITDA was 6.1% if non-recurring items were excluded).
- The booking of net profit from discontinued operations (non-recurring item) amounting to SAR 13,973m during the last year, as a result of a gain booked from the sale of stc’s controlling interest in its subsidiaries, Telecommunications Towers Company (TAWAL) and Digital Infrastructure Company.
- The booking of total other income (expenses) amounting to SAR 284m, as compared to SAR (2,291m), mainly due to:
1. The decrease in early retirement program cost by SAR 1,753m. 2. The booking of net share in results of investments in associates and joint ventures amounting to SAR 295m as compared to SAR (666m) mainly due to the booking of an impairment provision amounting to SAR 764m related to the investment in BGSM during the last year. 3. The decrease in finance cost by SAR 108m, that was offset by the decrease in finance income by SAR 441m.
- The booking of a positive zakat and income tax amounting to SAR 466m, mainly due to the reversal of zakat provision related to previous years which are no longer required, as compared to zakat and income tax expense amounting to SAR (1,192m). |
| Statement of the type of external auditor's report | Unmodified opinion |
| 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) |
The external auditor’s report included a comment mentioned in the Other Matter paragraph, as follows:
The consolidated financial statements for the year ended 31 December 2024 were audited and reviewed by another auditor who expressed an unmodified opinion on those statements on 6 Ramadan 1446H (corresponding to 6 March 2025). |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform with the classification used for the period ended 31 December 2025. |
| Additional Information |
The total number of Treasury shares related to the Employees Stock Incentives Plan stood at 10,202 shares (in thousand) at the end of the year 2025, and those shares are not entitled for any dividends distribution. As a result, basic earnings per share (EPS) was calculated based on the weighted average number of ordinary shares in a total of 4,988,738 shares (in thousand) for the year 2025.
For more information, please refer to the investor relations press release attached to the announcement.
We would like to draw the attention of our esteemed investors that they can access information on stc’s stock performance, dividend distributions, stc’s results and financial statements, and many more features through (stc Investor Relations application). |
| Attached Documents |
|
Year-on-Year Performance Drivers
Sales increased 2.54% YoY to SAR 77,819 million, primarily driven by commercial unit revenue growth of 3.4% and carriers and wholesale unit revenue growth of 10.8%. Net profit declined 39.94% YoY to SAR 14,828 million, mainly due to the absence of non-recurring gains from the sale of TAWAL and Digital Infrastructure Company subsidiaries that contributed SAR 13,973 million in the previous year. However, excluding non-recurring items, net profit actually grew 12.5% due to improved operational performance, reduced early retirement costs by SAR 1,753 million, and positive zakat adjustments of SAR 466 million.
Other Items
The auditors issued an unmodified opinion on the consolidated financial statements. The external auditor's report included an Other Matter paragraph noting that "The consolidated financial statements for the year ended 31 December 2024 were audited and reviewed by another auditor who expressed an unmodified opinion on those statements on 6 Ramadan 1446H (corresponding to 6 March 2025)." No material uncertainties regarding going concern or debt covenant breaches were reported. Total shareholders equity decreased 6.71% to SAR 83,414 million, while earnings per share declined from SAR 4.95 to SAR 2.97. The company holds 10,202 thousand treasury shares under the Employee Stock Incentives Plan, which are not entitled to dividend distributions.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=93192&anCat=1&cs=7010&locale=arAttached PDF document link:
https://www.saudiexchange.sa/Resources/fsPdf/15551_480_2026-02-17_10-12-10_en.pdfImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.