Saudi telecommunications operator stc Group reported record revenue for the first half of 2026, supported by growth across its domestic business divisions and subsidiaries.
Revenue reached $10.70 billion (SAR 40.11 billion) during the six months ended June 30, up 3.8% from $10.31 billion (SAR 38.66 billion) a year earlier.
Operating Profit Outpaces Revenue Growth
Operating profit increased 7.8% to $2.07 billion (SAR 7.77 billion), compared with $1.92 billion (SAR 7.21 billion) in the corresponding period of 2025. Gross profit rose 5.3% to $5.24 billion (SAR 19.64 billion), indicating that both measures expanded more quickly than revenue.
Earnings before interest, taxes, zakat, depreciation and amortization, or EBITDA, climbed 5.5% to $3.46 billion (SAR 12.97 billion). The company’s EBITDA margin reached 32.3%, up from approximately 31.8% in the comparable period of 2025.
Growth was spread across several parts of the business rather than being attributed to a single operation. Commercial-unit revenue increased 3%, business-unit revenue rose 2.1%, and carriers and wholesale revenue advanced 8.8%. Revenue generated by subsidiaries grew 4.6%, according to the exchange filing.
Second-quarter figures followed a similar pattern. Revenue for the three months ended June rose 3.7% year over year to $5.38 billion (SAR 20.17 billion), while operating profit increased 4.7% to $1.01 billion (SAR 3.79 billion). Quarterly EBITDA advanced 3.9% to $1.71 billion (SAR 6.41 billion).
Growth was not uniform across every measure. Second-quarter operating profit and EBITDA were lower than in the first quarter, when they stood at $1.06 billion (SAR 3.98 billion) and $1.75 billion (SAR 6.56 billion), respectively. Revenue, however, increased 1.2% from the preceding quarter.
Adjusted and Reported Profit Move Differently
stc reported first-half net profit attributable to shareholders of $1.95 billion (SAR 7.32 billion), down 2% from $1.99 billion (SAR 7.47 billion) in the same period last year. Earnings per share consequently slipped to approximately $0.39 (SAR 1.47), from $0.40 (SAR 1.50).
The company also presented an adjusted comparison under which net profit increased 6.3% after non-recurring items were excluded from both periods.
Several items affected the year-over-year comparison. stc recorded higher finance costs and lower finance income during the six-month period. Zakat and income-tax expense also reached $53.6 million (SAR 201 million), compared with a positive impact of $140.3 million (SAR 526 million) a year earlier, when reversals of provisions related to previous years affected the result.
Chief Executive Olayan bin Mohammed Alwetaid affirmed that the financial results demonstrated strong financial and operational performance, alongside continued progress in executing the group’s strategic priorities.
Operational indicators reported alongside the results included a 4.8% increase in stc’s Saudi mobile subscriber base to 30.3 million. Fixed-service customers rose 3% to 6.1 million, while the number of households connected to the company’s fiber network increased 5.2% to 3.87 million.
Digital Expansion Remains a Strategic Focus
Beyond its traditional telecommunications business, stc has continued expanding its portfolio of digital services as it seeks to diversify revenue sources. The group operates across areas including cloud computing, cybersecurity, digital infrastructure, internet of things (IoT), financial technology and data-center services through a number of subsidiaries and strategic investments.
The company's broader strategy reflects a shift among major telecommunications operators toward offering enterprise technology and digital platforms alongside connectivity services. These businesses are intended to complement its mobile and fixed-network operations while supporting demand from government, corporate and consumer customers.
stc said its first-half performance was supported by continued execution of this strategy, with growth across multiple business segments contributing to the group's overall financial results.
