stc Sets SAR 2.7 Billion Q3 Dividend as Nine-Month Revenue Rises 3.7%

stc will distribute SAR 2.7 billion ($730.7 million) as a third-quarter cash dividend, the Saudi telecom operator said in a Tadawul filing. The payout equals SAR 0.60 ($0.15) per share, or 5.5% of capital, and covers 5 billion eligible shares.

Dividend terms

The third-quarter distribution brings stc's first-nine-month dividends to SAR 8.23 billion ($2.2 billion), or SAR 1.65 ($0.44) per share. That amounts to 16.5% of the company's capital. stc's capital is SAR 50 billion ($13.3 billion), divided into 5 billion shares.

The record date is November 6 and payment is set for November 19. The quarterly SAR 0.60 per share payout follows a three-year dividend policy approved by shareholders at an Ordinary General Assembly on November 6, 2024. The policy took effect in the fourth quarter of 2024 and sets a SAR 0.60 per share payment each quarter.

Riyad Bank will make the distribution by direct bank transfer to shareholder accounts linked to investment portfolios. stc asked shareholders to update their details and link their bank accounts to their portfolios. Treasury shares total 15.5 million and are reserved for the employee stock incentive program; they are not eligible for dividends.

Dividends paid to non-resident investors carry a 5% withholding tax upon transfer or credit, under Article 68 of the Income Tax Law and Article 63 of the Implementing Regulations. Shareholders can check uncollected prior dividends through stc's investor relations application. Those with uncollected dividends must visit any Riyad Bank branch to collect them.

Nine-month results

The dividend announcement came with interim results for the period ended September 30. Nine-month revenue rose 3.7% year on year to SAR 60.1 billion ($16 billion). Gross profit increased 5.2% to SAR 29.4 billion ($7.8 billion), operating profit rose 4.1% to SAR 11.3 billion ($3 billion), and EBITDA grew 3.5% to SAR 19.2 billion ($5.1 billion). Net profit reached SAR 10.9 billion ($2.9 billion), up 2.6% after excluding non-recurring items in the current and prior-year periods.

Subsidiary revenue grew 9% over the nine months and accelerated to 18.5% year on year in the third quarter. stc said the performance was supported by its core telecommunications business and faster growth at subsidiaries. Revenue at the commercial unit rose 2%, while the carriers and wholesale unit posted a 5.1% increase.

Group CEO Olayan Mohammed Alwetaid attributed the results to strong revenue growth. He said the increase was driven by the telecommunications business in Saudi Arabia and that subsidiary growth was accelerating. The improvement reflects diversification of stc's investments and income streams, he said, along with greater integration across its telecommunications and digital businesses.

Mobile subscriptions in Saudi Arabia rose 4.8% year on year to 30.6 million. Fixed-line subscriptions increased 4% to 6.2 million, homes connected to stc's fibre network rose 7% to 3.9 million, and the 5G tower count climbed 31.5% to 12,380.

Network and partnerships

During LEAP 2026, stc strengthened collaboration with local and international companies through agreements and partnerships. The deals aimed to expand 5G networks, develop network capabilities, enhance data centre connectivity, and broaden cloud computing and digital services. stc also launched a net-zero-carbon solution for 5G Advanced network sites, designed to improve network efficiency and capacity while reducing energy consumption. It supported the Ministry of Defense's Health Services in the first remote robotic surgery between two healthcare facilities in Riyadh and Dhahran.

stc said those initiatives support diversification of its business and strengthen its ability to serve multiple sectors, while contributing to Saudi Arabia's digital future.

The quarterly payouts give income-focused shareholders a predictable return while stc spends on 5G, fibre and digital services. The company's ability to lift subsidiary revenue at a faster clip than the group total matters because those units are meant to reduce reliance on the mature Saudi telecom market. The dividend and the expansion plans are tied to the same balance sheet.