RIYADH: Saudi Telecom Co. reported quarterly profits that exceeded analyst estimates in the first quarter of 2026, indicating continued resilience in the company’s operational performance despite competitive pressures in the telecom market, according to a disclosure on Tadawul.
Net profit reached approximately SR3.7 billion ($986.48 million), a 1.3 percent increase compared to the same quarter last year, surpassing the average analyst forecast compiled by Bloomberg of SR3.27 billion.
Revenues also beat expectations, coming in at SR19.9 billion versus forecasts of SR19.7 billion, marking the firm’s highest quarterly revenue since 2003.
Beating profitability expectations reflects the company’s ability to maintain its margins, supported by growth in data services and digital solutions, along with the continued contribution of business units and subsidiaries to results.
The telecom giant attributed its growth to higher revenues from the customer unit, the carriers and operators, as well as increased earnings from subsidiaries.
Stc’s results serve as an important indicator of the performance of the Saudi telecom sector, given the company's market weight and its position among the largest listed companies on Tadawul.
The firm’s board of directors approved a cash dividend distribution of SR2.7 billion for the first quarter of 2026.
The Public Investment Fund is among the largest shareholders, holding a 62 percent stake in the company.
Silklink project with the Syrian Sovereign Fund
Stc Group CEO, Olayan M. Al-Wetaid, stated that the results reflect the strength of the group’s business model and its success in balancing investment in growth opportunities with operational efficiency improvements, alongside developing infrastructure and digital solutions to enhance sustainable growth and long-term competitiveness.
He added that the group continued executing its strategy to expand regional digital infrastructure through the “Silklink” project in Syria, in partnership with the Syrian Sovereign Fund, with an investment of SR3 billion.
Al-Wetaid explained that the project represents a qualitative step toward building a cross-border digital ecosystem by developing advanced infrastructure to connect Syria regionally and internationally via a fiber-optic network spanning over 4,500 km, along with data centers and submarine cable landing stations, reinforcing the group’s role in supporting regional digital connectivity and opening new growth horizons in the telecom and digital services sector.
Free cash flow multiplies 5 times
Net cash from operating activities increased approximately 1.5 times, with free cash flow reaching SR3.9 billion, recording a nearly fivefold increase compared to the first quarter of 2025.
STC Bank, in which the group holds an 85 percent stake, achieved a 24 percent year-on-year revenue growth in the first quarter, reaching SR397 million.
