stc Group Nine-Month Operating Profit Rises 4.1% to SAR11.3bn

stc group has announced that its operating profit for the first nine months of 2026 rose 4.1% year on year to SAR11,282 million, with group revenue climbing 3.7% to SAR60,096 million, according to interim financial results released on October 28, 2026, for the period ended September 30. The results, disclosed through official Saudi channels, show the group’s core telecommunications and digital businesses performing strongly while its subsidiaries delivered accelerating growth. Third-quarter net profit exceeded average analyst expectations, underscoring the resilience and diversification of a company that has become a cornerstone of the Kingdom’s digital economy.

The figures reflect steady progress across every major line of the business: gross profit increased 5.2% to SAR29,362 million, EBITDA rose 3.5% to SAR19,150 million, and net profit reached SAR10,918 million, representing growth of 2.6% after excluding non-recurring items in both the current and corresponding prior-year periods. For readers following the Kingdom’s economic transformation, why does a telecommunications operator’s quarterly performance carry significance beyond the balance sheet? Because stc group is not merely a telecom company; it is a strategic enabler of Saudi Arabia’s Vision 2030 ambitions, connecting households, enterprises, and government entities across the country while expanding its footprint into growth markets regionally.

Context and Background

What lies behind the numbers reported this week? stc group’s performance during the first nine months of 2026 was supported by the strength of its core business and accelerating growth across its subsidiaries, a combination that has become the defining feature of the group’s strategy in recent years. Total revenue of SAR60,096 million for the nine-month period represents a 3.7% increase year on year, with the commercial unit rising 2.0% and the Carriers and Wholesale unit climbing 5.1%. These gains came against a backdrop of intense competition and evolving customer expectations, making the consistent expansion all the more notable.

The group’s diversification strategy, shaped over several years of disciplined investment, is now visibly delivering results. Subsidiaries’ revenue grew 9.0% during the nine-month period, with third-quarter growth accelerating to 18.5% year on year. This acceleration illustrates how stc group has moved beyond traditional connectivity to build an ecosystem of digital services spanning cloud computing, data centers, cybersecurity, internet of things, and financial technology. Each of these lines of business supports the group’s mission to contribute to Saudi Arabia’s digital future while creating sustainable shareholder value and supporting the development of regional markets in which it operates.

How does a company of this scale maintain momentum decade after decade? The answer, according to the results, lies in operational discipline combined with strategic expansion. stc group continued to grow its customer base and expand its infrastructure throughout the period, reaching 30.6 million mobile subscriptions and 6.2 million fixed-line subscriptions in Saudi Arabia, increases of 4.8% and 4.0% respectively. The number of homes connected to its fibre network rose 7.0% to 3.95 million, while the number of 5G towers increased 31.5% to 12,380, reflecting sustained investment in the networks that underpin both consumer and enterprise services.

Key Details

What are the headline figures that define this reporting period? Operating profit of SAR11,282 million marks the group’s 4.1% year-on-year improvement, while EBITDA of SAR19,150 million grew 3.5%. The group declared a dividend of SAR0.55 per share for the third quarter of 2026, in line with the dividend policy approved by the General Assembly, bringing total dividends to shareholders for the first nine months to SAR8.2 billion. That distribution demonstrates the group’s capacity to generate consistent cash flows while continuing to fund growth, a balance that matters deeply to institutional and retail investors alike.

Commenting on the results, stc Group CEO Eng. Olayan Mohammed Alwetaid highlighted the group’s strong performance during the first nine months of 2026 as it continued to execute its strategy to strengthen its core telecommunications and digital businesses and expand into promising growth areas. He reaffirmed the group’s commitment to creating shareholder value. Eng. Alwetaid said: “stc’s financial performance was underpinned by strong revenue growth of 3.7% year on year during the nine-month period, driven by growth in its telecommunications business in Saudi Arabia and accelerating growth across its subsidiaries.”

The operational milestones recorded during the period extend well beyond subscriber counts. During LEAP 2026, the group strengthened its collaboration with leading local and international companies through agreements and partnerships to expand 5G networks, develop network capabilities, enhance data center connectivity, and expand cloud computing and digital services. These initiatives support the diversification of its business and strengthen its ability to serve multiple sectors. In addition, the group launched a new net-zero-carbon solution for 5G Advanced network sites, helping improve network efficiency and capacity while reducing energy consumption, and it supported the Ministry of Defense’s Health Services in performing the first remote robotic surgery between two of its healthcare facilities in Riyadh and Dhahran.

International and Regional Impact

Why should observers beyond Saudi Arabia pay attention to these results? stc group operates across multiple regional markets, and its nine-month performance signals the growing maturity of the digital infrastructure landscape across the Middle East. The 9.0% growth in subsidiaries’ revenue, accelerating to 18.5% in the third quarter, shows that the group’s investments outside its home market are translating into tangible returns. For international investors and technology partners, this trajectory positions stc group as a credible platform for regional expansion and a reliable counterparty in long-term infrastructure projects.

The group’s partnerships announced during LEAP 2026, one of the region’s most prominent technology events, further extend its international reach. Collaborations focused on 5G expansion, network capability development, data center connectivity, and cloud computing connect stc group with global technology leaders and create bridges between Saudi Arabia’s digital ecosystem and international markets. Those ties matter for enterprises seeking to serve customers across the region and for governments pursuing digital transformation agendas that depend on secure, high-capacity networks.

Economic and Strategic Significance

What does this performance mean for the broader Saudi economy? Telecommunications infrastructure is the backbone of modern economic activity, and stc group’s continued investment in fibre, 5G, and digital services underpins the productivity of every sector it serves. The expansion of the fibre network to 3.95 million homes and the 31.5% increase in 5G towers to 12,380 sites ensure that households and businesses have access to the connectivity required for cloud adoption, e-commerce, remote health services, and advanced industrial applications. Each of these capabilities feeds directly into the Kingdom’s economic diversification goals.

The group’s financial strength also has strategic implications. With EBITDA of SAR19,150 million and a dividend commitment that has already reached SAR8.2 billion for the first nine months, stc group demonstrates the fiscal capacity to sustain investment through economic cycles. That stability allows the group to pursue acquisitions, forge partnerships, and develop new technologies without compromising returns to shareholders. It also reinforces the confidence of international partners who view the group as a long-term collaborator in the region’s digital transformation and as an anchor tenant for the data center and cloud infrastructure that global hyperscalers are increasingly deploying in the Kingdom.

Operationally, the group’s achievements in sustainability and healthcare innovation illustrate how connectivity creates value beyond commercial metrics. The net-zero-carbon solution for 5G Advanced network sites improves efficiency while reducing energy consumption, aligning with the Kingdom’s environmental objectives. The remote robotic surgery conducted between Riyadh and Dhahran, supported by the Ministry of Defense’s Health Services, showcases how low-latency networks can extend specialized medical expertise to distant locations, a capability with profound implications for healthcare delivery across vast geographies.

Vision 2030 Alignment

How do these results connect to the Kingdom’s long-term ambitions? stc group’s strategy is closely aligned with Vision 2030, which envisions a diversified, digitally enabled economy in which technology drives productivity, innovation, and quality of life. The group’s investment in 5G, fibre, cloud computing, and data centers directly supports the National Transformation Program’s objectives of expanding broadband coverage, enabling digital government services, and fostering a thriving technology sector. Its role in supporting remote healthcare and advanced network solutions also contributes to the Vision’s quality-of-life goals.

As stc group continues to develop its businesses and operational and investment capabilities, strengthening its competitiveness and contributing to Saudi Arabia’s digital future, it exemplifies the private-sector leadership that Vision 2030 seeks to cultivate. The group’s ability to grow revenue, expand margins, reward shareholders, and invest in future technologies simultaneously demonstrates a model of sustainable value creation that serves as a benchmark for the region. With its nine-month results in hand, stc group enters the final quarter of 2026 well positioned to continue delivering on its strategy and to reinforce Saudi Arabia’s standing as a global leader in digital infrastructure and innovation.

20 Questions

Q1. What did stc group report for the first nine months of 2026?

A1. stc group reported nine-month revenue of SAR60,096 million, up 3.7% year on year, and operating profit of SAR11,282 million, up 4.1%, according to interim results for the period ended September 30, 2026.

Q2. How much did stc group’s operating profit rise?

A2. Operating profit rose 4.1% year on year to SAR11,282 million during the first nine months of 2026, reflecting growth in the core telecommunications business and accelerating contributions from subsidiaries.

Q3. What was the group’s nine-month revenue figure?

A3. Group revenue reached SAR60,096 million for the nine-month period, representing a 3.7% increase compared with the same period in the prior year.

Q4. How did gross profit perform during the period?

A4. Gross profit increased 5.2% year on year to SAR29,362 million, outpacing revenue growth and reflecting improved operational efficiency across the group’s business lines.

Q5. What was the EBITDA figure for the nine months?

A5. EBITDA increased 3.5% to SAR19,150 million during the nine-month period, demonstrating the group’s strong underlying cash generation capacity.

Q6. What was stc group’s net profit for the period?

A6. Net profit amounted to SAR10,918 million, representing growth of 2.6% after excluding non-recurring items in both the current and corresponding prior-year periods.

Q7. How fast did subsidiaries’ revenue grow?

A7. Subsidiaries’ revenue grew 9.0% during the nine-month period, with third-quarter growth accelerating to 18.5% year on year, highlighting the success of the group’s diversification strategy.

Q8. What dividend did stc group declare for the third quarter?

A8. The group declared a dividend of SAR0.55 per share for the third quarter of 2026, in line with the dividend policy approved by the General Assembly.

Q9. What were total dividends for the first nine months?

A9. Total dividends to shareholders for the first nine months of 2026 reached SAR8.2 billion, reflecting the group’s commitment to delivering sustainable returns.

Q10. Who commented on the financial results?

A10. stc Group CEO Eng. Olayan Mohammed Alwetaid commented on the results, highlighting the group’s strong performance and its continued execution of strategy to strengthen core and digital businesses.

Q11. What drove the group’s revenue growth according to the CEO?

A11. Eng. Alwetaid said growth was driven by the telecommunications business in Saudi Arabia and accelerating growth across subsidiaries, with commercial unit revenue up 2.0% and Carriers and Wholesale up 5.1%.

Q12. How many mobile subscriptions does stc have in Saudi Arabia?

A12. Mobile subscriptions in Saudi Arabia increased 4.8% year on year to 30.6 million, reflecting the group’s expanding customer base and network reach.

Q13. How many fixed-line subscriptions were reported?

A13. Fixed-line subscriptions rose 4.0% year on year to 6.2 million, supporting demand for home broadband and digital services across the Kingdom.

Q14. How many homes are connected to the fibre network?

A14. The number of homes connected to stc’s fibre network increased 7.0% to 3.95 million, expanding access to high-speed broadband for households across Saudi Arabia.

Q15. How many 5G towers does the group operate?

A15. The number of 5G towers increased 31.5% to 12,380, reflecting sustained investment in next-generation mobile infrastructure to support growing data demand.

Q16. What partnerships did stc group pursue at LEAP 2026?

A16. At LEAP 2026, the group strengthened collaboration with local and international companies through agreements to expand 5G networks, develop network capabilities, enhance data center connectivity, and expand cloud and digital services.

Q17. What sustainability initiative did the group launch?

A17. The group launched a new net-zero-carbon solution for 5G Advanced network sites, helping improve network efficiency and capacity while reducing energy consumption in line with environmental objectives.

Q18. How did stc support healthcare innovation?

A18. stc group supported the Ministry of Defense’s Health Services in performing the first remote robotic surgery between two healthcare facilities in Riyadh and Dhahran, demonstrating the value of low-latency connectivity.

Q19. How does stc group’s performance support Vision 2030?

A19. The group’s investment in 5G, fibre, cloud, and data centers supports the National Transformation Program’s goals of expanding broadband, enabling digital government, and fostering a thriving technology sector.

Q20. What is stc group’s outlook going forward?

A20. stc group continues to develop its businesses and operational and investment capabilities, strengthening competitiveness and contributing to Saudi Arabia’s digital future while creating sustainable shareholder value and supporting regional markets.

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