stc group nine-month operating profit rises 4.1% to SAR 11.3bn
Revenue rose 3.7% to SAR 60.1 billion and net profit grew 2.6% on a comparable basis, as subsidiaries outpaced the core telecom business.
stc group reported a 4.1% year-on-year rise in operating profit to SAR 11,282 million for the nine months ended 30 September 2026, with revenue and gross profit both growing faster than the operating line. Revenue rose 3.7% to SAR 60,096 million. Gross profit increased 5.2% to SAR 29,362 million. The operating result therefore grew more slowly than gross profit but faster than revenue.
EBITDA for the period reached SAR 19,150 million, an increase of 3.5%. Net profit was SAR 10,918 million. After excluding non-recurring items from both the current and prior-year periods, net profit rose 2.6%. Third-quarter net profit beat the average of analyst estimates.
The group attributed the 3.7% revenue increase to its Saudi telecommunications business and to subsidiaries growing faster than the core operation. Eng. Olayan Mohammed Alwetaid, the group’s chief executive, said the performance reflected diversified investments and income streams as well as greater integration across its telecom and digital businesses. Subsidiary revenue rose 9.0% over the nine months, and third-quarter subsidiary revenue growth accelerated to 18.5% year on year.
At unit level, the commercial unit increased revenue by 2.0% year on year over the nine months. Carriers and Wholesale rose 5.1%. The unit figures show a core business that is still growing, but at a slower pace than the subsidiary portfolio. The 9.0% subsidiary growth rate is more than four times the 2.0% growth in the commercial unit.
Those figures show a group whose operating profit grew more slowly than gross profit but faster than revenue. EBITDA growth of 3.5% was slightly below revenue growth of 3.7%. Net profit growth of 2.6% on a comparable basis was slower than operating profit growth. The commercial unit grew more slowly than group revenue, while Carriers and Wholesale grew faster.
Customer and network numbers
Mobile subscriptions in Saudi Arabia reached 30.6 million, up 4.8% year on year. Fixed-line subscriptions rose 4.0% to 6.2 million. Homes connected to the fibre network increased 7.0% to 3.95 million. The three measures point to steady expansion in the customer base rather than a surge in one segment.
The 5G build-out expanded faster. The number of 5G towers rose 31.5% to 12,380. The tower count measures network capacity rather than demand, but it indicates the scale of the infrastructure being put in place while the group adds mobile and fixed-line customers. A larger 5G footprint also supports the digital and cloud services the group is trying to sell alongside connectivity.
At LEAP 2026, stc group signed agreements and partnerships with local and international companies. The deals cover expansion of 5G networks, development of network capabilities, enhancement of data centre connectivity and growth of cloud and digital services.
The group also launched a net-zero-carbon solution for 5G Advanced network sites. The solution is designed to improve efficiency and capacity while lowering energy consumption. Energy use is a cost and sustainability issue for operators as they add denser 5G coverage, so the launch sits alongside the tower expansion as part of the same network programme.
Dividend and cash returns
stc group declared a third-quarter 2026 dividend of SAR 0.55 per share under the policy approved by the General Assembly. Total dividends to shareholders for the first nine months of 2026 reached SAR 8.2 billion.
The nine-month payout compares with net profit of SAR 10,918 million for the same period. That leaves room for the distribution but also means the group is returning a large share of profit while still funding network expansion, fibre connections and digital services. The final quarter will determine whether full-year cash generation keeps pace with the policy.
The SAR 8.2 billion total covers the first nine months, while the SAR 0.55 per share figure is specific to the third quarter.
Strategy and investment
Alwetaid said the group is executing a strategy to strengthen its core telecom and digital businesses, expand into growth areas and create shareholder value. The results reflect diversified investments and income streams, the group said, along with greater integration across its telecom and digital businesses.
The mix is visible in the numbers. The Saudi telecom business is adding mobile, fixed-line and fibre customers. The subsidiaries are growing at 9.0% over nine months and 18.5% in the third quarter. The commercial unit, which grew 2.0%, and Carriers and Wholesale, which grew 5.1%, sit between the two.
That matters for a group with a large dividend programme. Mature telecom markets generate cash, but they grow slowly. Faster-growing subsidiaries can add revenue and digital services, but they also require investment. The 5G tower expansion, the LEAP 2026 agreements and the fibre customer growth all point to spending across both the core network and newer businesses.
The figures show where growth is coming from. Mobile and fixed subscriptions are rising, but the subsidiaries are growing much faster. The 5G tower expansion gives those subsidiaries more capacity to sell cloud, data centre and digital services, while the core business generates the cash that funds the dividend. The balance between the two will shape how quickly the group can lift digital revenue without slowing network investment.
Remote surgery
stc group supported the Ministry of Defence’s Health Services in carrying out the first remote robotic surgery between two of its facilities, in Riyadh and Dhahran. The procedure was carried out between the two sites.
It is a specific example of the digital services the group is trying to build alongside its telecom networks. The financial results show the core business still growing, but the strategic emphasis is on subsidiaries, cloud, data centres, 5G capabilities and applications such as remote surgery that depend on network quality.
