Riyadh: TECHz – News Desk
stc Group has announced its interim financial results for the first half of 2026, recording significant growth in both its digital infrastructure network and top-line revenue.
The telecommunications giant reported record revenues of SAR 40.11 billion for the six-month period ending June 30, 2026, marking a 3.8% increase compared to the same period last year. Eng. Olayan bin Mohammed Alwetaid, stc Group CEO, attributed the sustained progress to the resilience of the group’s operations and successful execution of its long-term digital transformation strategy.
The group demonstrated solid operational efficiency across its key business segments over the first six months, recording a gross profit of SAR 19.63 billion (up 5.3%), an operating profit of SAR 7.77 billion (up 7.8%), and an EBITDA of SAR 12.96 billion (up 5.5%). While the overall net profit for H1 2026 increased by 6.3% (after excluding non-recurring items), the second quarter specifically saw a net profit of 3.62 billion riyals, a 5% year-on-year decrease. This contraction was primarily driven by increased financing costs and the absence of a non-recurring positive impact from a 216-million-riyal Zakat provision reversal recorded in Q2 of the previous year. In line with its dividend policy, stc will distribute SAR 0.55 per share for Q2 2026, totaling a payout of SAR 2.7 billion to shareholders.
The financial gains were underpinned by aggressive infrastructure investment and a rapidly expanding user base across the Kingdom. The number of stc mobile customers reached 30.3 million, representing a 4.8% increase, while fixed-line customers grew by 3.0% to hit 6.1 million. Concurrently, the company scaled its 5G infrastructure to 12,120 towers, and households connected to the fiber-optic network increased by 5.2%, totaling 3.87 million.
Beyond connectivity, stc Group advanced several digital initiatives during the first half of the year. The company successfully launched stc cloud, powered by Oracle Alloy, establishing the Kingdom’s first sovereign cloud solution, and forged a pivotal partnership with AST SpaceMobile to develop direct-to-device satellite communication services. On the domestic front, stc Group achieved a local content ratio of 50.69% through its rawafed program, earning first place in the Local Content Award for Large Enterprises for the third consecutive year. The group’s financial stability continues to be globally recognized, maintaining strong credit ratings of “A+” from S&P and Fitch, “Aa3” from Moody’s, and “AAA” from Tassnief.
