stc’s Reported Net Profit Falls 5.7% to 10.918 Billion Riyals in 9 Months
Key Facts
stc announced its preliminary financial results for the nine months ended September 30, 2026, reporting net profit of 10,918 million riyals, down 5.7% from the same period a year earlier. The decline came alongside revenue growth of 3.7% to 60,096 million riyals and a 5.2% increase in gross profit to 29,362 million riyals. Operating profit rose 4.1% to 11,282 million riyals, while earnings before interest, taxes, zakat, depreciation and amortization increased 3.5% to 19,150 million riyals. This shows a divergence between expanding activity and operating profitability on one hand, and lower reported net profit on the other. Earnings per share were 2.18 riyals, compared with 2.32 riyals in the first nine months of 2025.
The net profit picture differs when non-recurring items are excluded from both periods being compared; the group said profit rose 2.6% on this basis. This adjusted growth contrasts with a 5.7% decline in reported net profit, from 11,579 million riyals to 10,918 million riyals. The two figures offer two readings of the period: the first records the reported result as presented in the financial statements, while the second compares profit after excluding non-recurring items from both years. The available data here did not state the value or details of those items, while revenue and operating profitability remained on a year-on-year growth track. This gap stands out as a key point in reading the nine-month results.
stc attributed revenue growth to expansion in its telecommunications business in Saudi Arabia and accelerating growth at its subsidiaries, according to the group’s statement. Commercial unit revenue rose 2.0% during the nine months, while carrier and wholesale unit revenue increased 5.1%. Revenue at subsidiaries also grew 9.0% over the same period. Growth at these companies accelerated to 18.5% year on year in the third quarter, according to the announcement. The group said growth was "driven by the growth of telecommunications business in Saudi Arabia and accelerating growth across subsidiaries," pointing to contributions from more than one business to revenue expansion.
In the third quarter, revenue rose 3.7% to 19,985 million riyals, but reported net profit came in at 3,599 million riyals, down 12.4% year on year. stc’s announcement said quarterly net profit exceeded the average of financial analysts’ estimates, despite falling from its level in the same quarter a year earlier. This presents a quarterly picture that differs from the revenue growth recorded in the quarter, as it was not accompanied by an increase in reported net profit. The available announcement did not specify the average estimate or the amount by which profit exceeded it. The quarter’s performance comes amid nine-month results that also showed growth in revenue and operating profit against a decline in reported net profit.
Operating indicators reflected an expansion in the group’s subscriber base in Saudi Arabia as of September 30, 2026. Mobile subscriptions rose 4.8% to 30.6 million, and fixed-line subscriptions increased 4.0% to 6.2 million. The number of homes connected to the fiber network also grew 7.0% to 3.95 million. These figures indicate growth in the telecommunications base and connected infrastructure during the period, alongside the increase recorded in group revenue. The disclosure used here included no additional figures on 5G towers, so their number is not included in this account.
The group’s board announced a dividend of 0.55 riyals per share for the third quarter, totaling 2,741.46 million riyals. The disclosure set November 6, 2026 as the record date and November 19, 2026 as the payment date. The announcement sets out a cash return with a specified amount and date alongside the quarterly results, after quarterly net profit fell year on year despite revenue growth. The available data here did not include total dividends for the nine months, so the figure is limited to the announced third-quarter distribution.