stc Group Reports Record Revenue and Profit Growth

stc group has reported a significant financial performance for the first half of 2026, achieving a record revenue of SAR 40,110 million (approximately $10.7 billion). This marks a 3.8 percent increase compared to the same period last year, underscoring the company's robust operational execution and expanding market presence in the telecommunications and digital infrastructure sectors. The company's strategic focus on digital transformation and network expansion appears to be yielding substantial returns.

The telecommunications giant's profitability also saw a healthy uptick, with net profit climbing 6.3 percent after accounting for non-recurring items. This growth in earnings is further supported by a 7.8 percent rise in operating profit, reaching SAR 7,771 million ($2.05 billion). Earnings Before Interest, Taxes, Zakat, Depreciation, and Amortization (EBITDA) demonstrated a 5.5 percent increase, hitting SAR 12,968 million, indicating strong operational efficiency and cost management across the group's diverse business units.

stc group CEO, Eng. Olayan bin Mohammed Alwetaid, highlighted the company's resilience and the effectiveness of its business model in navigating the dynamic market. He noted that the net profit for the second quarter surpassed financial analyst expectations by 4 percent, reflecting a positive trajectory. The company's subscriber base continues to expand, with mobile customers reaching 30.3 million, a 4.8 percent year-over-year increase, and fixed-line customers growing by 3.0 percent to 6.1 million. Investments in advanced infrastructure, including a 5G tower count of 12,120 and a 5.2 percent rise in fiber-optic household connections to 3.87 million, are crucial enablers of this growth.

Beyond core telecommunications services, stc group is actively pursuing strategic partnerships and expanding its digital offerings. The company recently entered an agreement with ROSHN Group to develop neutral fiber-optic network infrastructure for new residential communities, demonstrating its role in supporting large-scale urban development. Furthermore, progress is being made on a joint venture with HUMAIN through its subsidiary center3, and a strategic collaboration with AST & Science, LLC (AST SpaceMobile) is advancing satellite communication services. The group's digital bank also continues to show sustained growth in its customer base and investment portfolios.

The company's commitment to innovation was further evidenced by the launch of stc cloud, powered by Oracle Alloy, positioning it as the Kingdom's first sovereign cloud offering. This move aligns with the growing demand for secure, localized cloud solutions and enhances stc group's position as a key player in Saudi Arabia's digital transformation initiatives. These developments, coupled with significant contributions during the Hajj season through advanced connectivity and AI-powered solutions, showcase the group's multifaceted approach to value creation and market leadership.

The financial results reflect a broader trend in the Middle East's telecommunications sector, which is experiencing robust growth driven by increasing data consumption, 5G adoption, and digital service demand. Companies like stc group are capitalizing on these trends through strategic investments in infrastructure and diversification into adjacent digital services. The company's consistent performance and forward-looking strategy suggest continued expansion and value generation for its stakeholders in the coming periods.