On 2026-07-29 15:43:45 (Saudi Time), Saudi Telecom Company (stc) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, stc's revenue grew 3.75% YoY to SAR 40,110 million (from SAR 38,660 million), driven by increases across all business segments including Commercial unit revenue (+3.0%), Business unit revenue (+2.1%), Carriers and Wholesale unit revenue (+8.8%), and subsidiaries revenue (+4.6%). Gross profit rose 5.247% to SAR 19,637 million and operating profit increased 7.825% to SAR 7,771 million, with EBITDA improving 5.5% to SAR 12,968 million, reflecting enhanced operational efficiency and a 1.7% improvement in EBITDA margin to 32.3%. Despite these operational gains, net profit attributable to shareholders declined 2.047% YoY to SAR 7,319 million (from SAR 7,472 million), primarily due to zakat and income tax expense of SAR (201) million in the current period compared to a positive impact of SAR 526 million in the prior period — both periods affected by reversals of zakat provisions related to prior years — as well as an increase in finance cost by SAR 157 million and a decrease in finance income by SAR 306 million, partially offset by net other gains of SAR 104 million versus net other losses of SAR (61) million in the comparable period.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 1.163% to SAR 20,171m, driven by growth in Business unit revenue (+2.4%), Carriers and Wholesale unit revenue (+4.9%), and subsidiaries revenue (+1.2%). Net profit declined 1.975% QoQ to SAR 3,623m, as the operating profit dipped to SAR 3,793m from SAR 3,978m and EBITDA fell to SAR 6,411m from SAR 6,557m, partly offset by a SAR 42m decrease in total other expenses—supported by a swing in net other income to SAR 187m from SAR (2m), lower early retirement program costs (down SAR 85m), and higher associate/JV income (up SAR 25m). These gains were partially countered by net other losses of SAR (62m) versus prior-quarter gains of SAR 166m and a net increase in finance costs of SAR 49m. Additionally, zakat and income tax expense decreased by SAR 103m due to the reversal of a prior-year zakat provision no longer required.

Other Items

Saudi Telecom Company (stc) reported its interim condensed consolidated financial results for the six months ended 30 June 2026. The external auditor issued an unmodified conclusion with no additional comments in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. For Q2 2026, revenue reached SAR 20,171 million, up 3.701% YoY, driven by Commercial unit revenue (+0.9%), Business unit revenue (+8.4%), Carriers and Wholesale unit revenue (+11.4%), and subsidiaries revenue (+3.5%). Q2 net profit attributable to shareholders was SAR 3,623 million, reflecting a YoY decline of 5.231%, though stc noted net profit growth of 0.7% after excluding non-recurring items; EBITDA increased 3.9% to SAR 6,411 million. Total comprehensive income attributable to shareholders for Q2 stood at SAR 2,968 million, down 31.707% YoY and 26.571% QoQ. For the six-month period, total comprehensive income attributable to shareholders was SAR 7,010 million, compared to SAR 8,717 million in the prior year period, a decline of 19.582%. Total shareholders' equity (after deducting minority equity) stood at SAR 84,986 million as of 30 June 2026, up 2.765% from SAR 82,699 million in the comparable prior year period. Earnings per share for the six-month period were SAR 1.47, compared to SAR 1.5 in the prior year period, calculated based on a weighted average of 4,992,046 thousand ordinary shares for Q2 2026, with 6,976 thousand treasury shares related to the Employees Stock Incentives Plan excluded from dividend entitlement. No material risks, going concern uncertainties, or accumulated loss disclosures were reported.

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