stc posts SAR 10.9B net profit in 9M 2026; Q3 at SAR 3.6B

Saudi Telecom Co. (stc) posted a net profit of SAR 10.9 billion in 9M 2026, down from SAR 11.6 billion in the year-ago period.

The company attributed the annual decline in net profit to a SAR 31 million decrease in total other income, reflecting a SAR 376 million decline in financing income and a SAR 281 million increase in financing costs in 9M 2026.

The profit decline came in despite recording net other income of SAR 98 million in 9M 2026, compared with net other expenses of SAR 96 million a year earlier, alongside a SAR 173 million increase in the net share of results from investments in associates and joint ventures.

This is in addition to a SAR 227 million increase in net other gains, driven by land-sale gains in 9M 2026, versus nonrecurring losses related to changes in financial instruments a year ago, following stc’s increase in its stake in Telefónica from 4.97% to 9.97%.

Profit was also weighed down by zakat and income tax expenses of SAR 357 million, compared with a positive impact of SAR 683 million in 9M 2025, resulting from the reversal of a zakat provision related to previous years as it was no longer required. These factors were partially offset by a 3.7% increase in revenue to SAR 60.1 billion, driven by growth of 2% in the customer unit, 5.1% in the carriers and operator unit, and 9% at subsidiaries.

The company said the performance reflected successful execution of its strategy, strengthening of its core business, expansion into promising growth areas, and accelerating growth at subsidiaries.

Gross profit rose 5.2% to SAR 29.36 billion in 9M 2026, from SAR 27.91 billion a year earlier, while EBITDA increased 3.5% to SAR 19.15 billion, from SAR 18.50 billion, reflecting stronger operating performance, revenue growth and improved operational efficiency.

Operating profit also rose 4.1% to SAR 11.28 billion during the period, from SAR 10.83 billion; after excluding nonrecurring items in both periods, net profit increased 2.6%.

In Q3 2026, the company attributed the annual decline in net profit to a SAR 116 million decrease in operating profit and a SAR 69 million decline in total other income, reflecting a SAR 70 million decrease in financing income and a SAR 124 million increase in financing costs.

This was despite a SAR 52 million increase in the net share of results from investments in associates and joint ventures and a SAR 62 million increase in net other gains from land sales during the quarter.

Earnings were also affected by zakat and income tax expenses of SAR 156 million in Q3 2026, compared with a positive impact of SAR 157 million in Q3 2025, following the reversal of a zakat provision related to previous years as it was no longer required.

These factors were partially offset by a 3.7% year-on-year (YoY) increase in revenue to SAR 19.99 billion, driven by an 18.5% YoY growth in subsidiaries’ revenue, and a 5.1% rise in gross profit to SAR 9.72 billion, from SAR 9.25 billion in the year-earlier quarter.

Sequentially, stc’s net profit declined 7.4% from SAR 3.6 billion in Q2 2026, weighed down by a SAR 140 million decrease in gross profit, a SAR 282 million decline in operating profit, and a SAR 107 million increase in zakat and income tax expenses following the reversal of a zakat provision.

These factors were partially offset by a SAR 351 million increase in total other income, as the company recorded net other gains of SAR 673 million in the third quarter of 2026, compared with net other losses of SAR 62 million in the previous quarter, driven by land-sale gains and gains from the revaluation of units in the STV venture capital fund.

On a quarterly basis, the increase in other income came despite an SAR 85 million decrease in financing income, a SAR 12 million increase in financing costs, and net other expenses of SAR 88 million in Q3 2026, compared with net other income of SAR 187 million in the previous quarter.

Revenue reached SAR 19.99 billion, supported by a 0.2% increase in the customer unit’s revenue and 5% growth in subsidiaries’ revenue. After excluding nonrecurring items in the previous quarter, net profit increased 3.6%.

Total shareholders’ equity, excluding minority interest, reached SAR 85.59 billion at the end of 9M 2026, compared with SAR 83.95 billion a year earlier.

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