stc Group achieved a net profit of one million riyals, a 13.38% increase for the six-month period compared to the same period last year

Saudi Gazette

27-07-2025

stc announced on Sunday the company's preliminary financial results for the period ending at 30 June 2025:
Revenues for the 6 months period of 202 5 reached 38,660 million with an increase of 2.09 % as compared to the comparable period last year .
months period of 202 reached million with an increase of % as compared to the comparable period last year
Gross Profit for the 6 months period of 202 5 reached 18,658 million with an increase of 6.61% as compared to the comparable period last year .
months period of 202 reached million with an increase of 6.61% as compared to the comparable period last year
Operating Profit for the 6 months period of 202 5 reached 7,207 million with an increase of 2.28% as compared to the comparable period last year .
the months period of 202 reached million with an increase of 2.28% as compared to the comparable period last year
Earnings before Interest, Taxes, Zakat, Depreciation and Amortization (EBITDA) for the 6 months period of 202 5 reached 12,289 million with an increase of 6.10% as compared to the comparable period last year .
months period of 202 reached million with an increase of 6.10% as compared to the comparable period last year
Net Profit for the 6 months period of 202 5 reached 7,472 million with an increase of 13.38% as compared to the comparable period last year .
months period of 202 reached million with an increase of 13.38% as compared to the comparable period last year
stc distributes nd quarter of 2025, in accordance with the dividends distribution policy approved by General Assembly.
Commenting on the results, Eng. Olayan Alwetaid, CEO of stc Group, stated that the Group continued to deliver excellent performance through its commitment to its strategy and success in capitalizing on available opportunities within the ICT sector. He pointed out that the focus on financial discipline and improving the efficiency of capital management were key factors in supporting business stability, enhancing the Group's readiness to adapt to changes, and expanding into future growth avenues with confidence and sustainability. This was reflected in the Group's financial performance, as stc achieved revenue growth of 2.1% during the first six months of the year, and an increase in gross profit by 6.6%, compared to the same period last year. Additionally, the Cost Efficiency Program contributed effectively to enhancing operational and financial efficiency, which positively impacted the company's performance, resulting in EBITDA growth of 6.1% with an increase in EBITDA margin by 3.9% to reach 31.8%, which in turn led to a notable increase in net profit by 13.4%, reaching7.5 billion.The GCEO also emphasized that the growing demand for the Group's services is a testament to the community's trust in the efficiency of its digital solutions. This was demonstrated by the number of STC Bank customers surpassing three million within a short period since its launch at the beginning of 2025, reflecting the accelerated growth in the adoption of digital banking services and embodying the Group's growing role in developing the financial services sector.Furthermore, the GCEO praised the tremendous efforts made by the Kingdom to provide a safe and comfortable environment for pilgrims and its continuous dedication to facilitating Hajj rituals and enhancing the quality of services provided to pilgrims. He also affirmed stc Group's dedication to contributing to the success of the Hajj season through the deployment of the latest technologies and digital solutions, including advanced AI solutions, which the Group implemented to boost network efficiency within the holy sites. During the season, the Group provided record internet speeds serving more than 1.6 million pilgrims and provided services to 1.49 million stc network users, which led to exceptional results, as stc's network recorded the highest traffic hour in its history in Muzdalifah, with a 64% increase in data usage and a 129% surge in 5G network traffic compared to the previous year. Meanwhile, the user experience index rose by 25%, underscoring the network's ability to support one of the world's most significant mass crowd movements.As part of its efforts to expand coverage and provide high-speed connectivity in both urban and remote areas to bridge the digital divide and ensure the delivery of reliable high-quality communication services, stc's 5G network now covers more than 9,500 sites across the Kingdom. The Group has also continued to enhance its network technically by activating the low-frequency spectrum (600 MHz – N71) recently acquired, becoming the first operator in the region to activate this band commercially. This enables users in peripheral areas to access advanced communication services and high-speed connections, thanks to its superior coverage and penetration capabilities. In addition, stc has adopted the 5G standalone technology, which allows full utilization of advanced 5G features such as reduced latency and customized service quality through network slicing. This marks a pivotal step in enabling many vital sectors and strengthening the Kingdom's position in adopting and developing cutting-edge global technologies.In line with its commitment to maintaining its leadership in the fields of telecommunications and information technology, stc Group signed several strategic agreements over the past period. In the field of cloud computing, the Group signed a partnership agreement with Oracle for a value of more than2 billion, aimed at accelerating digital transformation across the Kingdom, through the development of advanced AI-powered cloud infrastructure and the provision of sovereign cloud solutions via the Oracle Alloy platform, hosted at center3's data centers. Additionally, stc signed a strategic partnership with Singtel Group to collaborate across several areas, including digital platform integration, developing human capabilities, IoT solutions and expansion of subsea cable systems. These partnerships contribute to strengthening stc's position as a comprehensive digital provider across the region.Finally, stc Group released its sixth Sustainability Report for the year 2024, which showcases the progress made across sustainability, environmental and social responsibility, and governance. The report also highlights the Group's efforts to enhance environmental performance and human capital development through digital innovation and upholding the principles of effective governance and ethical excellence. In recognition of these efforts, stc's ESG rating was upgraded from 'BBB' to 'A' in the latest MSCI ratings, reflecting the Group's commitment to adopting the highest local and international sustainability standards and practices. These initiatives reaffirm the Group's role as a key enabler of the national economy by supporting job creation, business growth, talent and skill enhancement, community well-being and the advancement of digital infrastructure. stc Group remains committed to advancing its sustainability efforts and continuing to maximize its positive impact on society, the environment and the economy by adopting sustainability principles across its various business areas.