stc H1 2025 profit jumps 13% to SAR 7.47B; Q2 at SAR 3.82B

stc, the fourth-largest listed firm on the Saudi Exchange (Tadawul) by market value, posted a 13% rise in H1 2025 profit to SAR 7.47 billion, from SAR 6.59 billion in the same period last year.

The six-month profit growth was mainly driven a revenue increase of SAR 794 million and a SAR 363 million decline in the cost of revenue. This in turn boosted gross profit by SAR 1.15 billion by the end of H1 2025, compared to the same period last year.

It also cited a SAR 122 million drop in total other expenses, supported by higher earnings from associates and joint ventures, which added SAR 124 million. Finance costs fell by SAR 114 million, albeit the pullback was partly capped by a SAR 54 million decline in finance income. Other net expenses were also down SAR 49 million year-on-year.

The company posted net other losses of SAR 61 million in H1 2025, compared to gains of SAR 56 million a year earlier. These losses were mainly linked to a one-off charge of SAR 219 million resulting from changes in financial instruments after stc raised its stake in Telefonica from 4.97% to 9.97%. This was partially offset by gains from the revalution of its venture capital funds’ units.

During the six-month period, stc booked SAR 526 million in Zakat and income tax, benefiting from the reversal of provisions from previous years. That compared to a SAR 508 million Zakat and income tax charge recorded in the same period of 2024.

In addition, operating expenses increased by SAR 995 million, mainly due to higher selling and marketing costs, which rose by SAR 310 million, general and administrative expenses, which climbed by SAR 141 million, and depreciation and amortization, which jumped SAR 545 million. The company said the rise in amortization was tied to the new spectrum license.

In Q2 2025, stc’s net profit advanced by 16% to SAR 3.82 billion from SAR 3.30 billion in the same period last year.

Compared to Q1 2025, net profit accelerated by 4.8% from SAR 3.64 billion.

Shareholders’ equity, after minority interest, rose to SAR 82.7 billion as of June 30, 2025, from SAR 76.4 billion in the year-earlier period.

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