https://gulfbusiness.com/ stc group has announced strong interim financial results for the six-month period ended 30 June 2026, reporting record revenue of SAR 40.1 billion, supported by continued growth across its core telecommunications business, digital services and strategic investments.

The group’s financial performance reflected steady operational momentum, with revenue reaching SAR40,110m, marking a 3.8 per cent increase compared with the same period last year. Gross profit rose 5.3 per cent to SAR19,637m, while operating profit increased 7.8 per cent to SAR7,771m.

Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) reached SAR12,968m during the first half of 2026, representing growth of 5.5 per cent compared with the corresponding period last year.

The company also reported a 6.3 per cent increase in net profit after excluding non-recurring items, highlighting continued financial strength and operational efficiency. In addition, stc announced the distribution of SAR0.55 per share for the second quarter of 2026, in line with the dividend distribution policy approved by the General Assembly, resulting in a total payout of SAR2.7bn to shareholders.

CEO highlights strategic progress and financial resilience
Commenting on the results, stc group CEO Engineer Olayan bin Mohammed Alwetaid said the first-half performance reflected the group’s strong financial and operational position, alongside continued progress in executing its strategic priorities.

He noted that the results demonstrated the strength of stc’s business model, the resilience of its operations and its ability to deliver sustainable value for shareholders while advancing its long-term strategy.

“The group delivered strong financial performance during the first half of 2026, with net profit increasing by 6.3 per cent after excluding non-recurring items in both the current and corresponding periods of the previous year,” Alwetaid said.

He added that revenue growth of 3.8 per cent contributed to a 5.5 per cent rise in EBITDA, while stc’s second-quarter net profit exceeded the average expectations of financial analysts by 4 per cent.

Subscriber growth and network expansion continue
Alwetaid highlighted the group’s continued operational improvements, driven by subscriber growth and investments in digital infrastructure.

The number of stc mobile customers in Saudi Arabia reached 30.3 million, representing a 4.8 per cent increase compared with the same period last year. Fixed-line customers also grew by 3 per cent, reaching 6.1 million.

The company continued expanding its next-generation network capabilities, with the number of 5G towers increasing to 12.12K. Meanwhile, households connected to the fibre-optic network grew by 5.2 per cent to reach 3.87 million.

According to stc, these developments reflect rising demand for advanced connectivity services and the group’s ongoing commitment to strengthening the Kingdom’s digital infrastructure.

Supporting digital services during Hajj season
During the Hajj season, stc continued its role as a digital enabler by providing pilgrims with an integrated ecosystem of connectivity services and artificial intelligence-powered digital solutions.

The group’s advanced infrastructure supported record levels of data traffic while maintaining network readiness and ensuring uninterrupted digital services across the Holy Sites.

The company said its investments in technology and connectivity played a key role in supporting the digital needs of millions of visitors during the religious season.

New partnerships strengthen digital infrastructure
As part of its strategic expansion, stc group signed an agreement with ROSHN Group to develop neutral fibre-optic network infrastructure for upcoming phases of the SEDRA community in Riyadh.

Under the agreement, stc will build and deploy a fibre-optic network that allows multiple telecommunications service providers to deliver services through shared infrastructure. The initiative is expected to improve operational efficiency and support the kingdom’s growing residential developments.

The group also continued progress on its memorandum of understanding with HUMAIN to establish a joint venture through center3, one of stc group’s subsidiaries.

The extension of the memorandum allows both parties to complete regulatory and operational requirements while advancing negotiations toward finalizing the joint venture agreement.

Additionally, stc continued strengthening its partnership with AST & Science, LLC (AST SpaceMobile), which aims to provide satellite communication services through direct-to-device connectivity technology.

STC Bank and digital businesses drive growth
stc group continued executing its strategy for STC Bank, with the digital banking platform recording sustained growth through an expanding customer base, increased deposits and investment portfolio growth.

The bank’s performance contributed to revenue growth and improved profitability while continuing to provide integrated digital banking solutions and enhanced customer experiences.

The group also expanded its broader digital strategy, creating new opportunities across its business segments. A key milestone was the launch of stc cloud, powered by Oracle Alloy, which was introduced as the Kingdom’s first sovereign cloud solution.

The platform combines advanced global technology with local operations and governance while maintaining compliance with Saudi Arabia’s regulatory requirements.

stc said the launch supports national digital transformation efforts by strengthening data sovereignty and providing advanced cloud capabilities for businesses and government entities.

Sustainability and local content efforts continue
stc group further reinforced its sustainability commitments through the release of its seventh annual Sustainability Report for 2025.

The report highlighted progress in environmental initiatives, human capital development, governance and responsible business practices. The group also achieved an AA rating in the 2025 MSCI ESG assessment.

The company continued supporting local content development through the Rawafed program, ranking first in the Local Content Award for Large Enterprises for the third consecutive year.

The award, organised by the Local Content and Government Procurement Authority, recognized stc’s contribution to national economic development. The group achieved a local content ratio of 50.69 per cent.

stc group maintained its strong financial standing, with its credit ratings reaffirmed by leading international agencies.

The group retained an “A+ with a stable outlook” rating from Standard & Poor’s (S&P) and Fitch Ratings, an “Aa3 with a stable outlook” rating from Moody’s, and an “AAA with a stable outlook” rating from Tassnief.

The ratings reflect stc’s strong market position, financial stability and leadership role in the telecommunications sector.