Saudi Telecom Company (stc) announces its interim condensed consolidated financial results for the period ending on 30-6-2026 (Six Months)

stc group reported a net profit of SAR 7.32 billion for the first half ended June 30, 2026, which represents a 6.3% increase when excluding non-recurring items, while total revenue grew 3.8% year-on-year to SAR 40.11 billion. Top-line growth was supported by resilient performance in the KSA Commercial and Business units alongside an 8.8% increase in the Carriers & Wholesale segment.
EBITDA rose 5.5% to SAR 12.97 billion, with the EBITDA margin expanding to 32.3% from 31.8% in the prior-year period. This improvement reflects enhanced operational efficiency and cost management, which also contributed to a 7.8% increase in operating profit to SAR 7.77 billion.
Free cash flow surged 264.5% to reach SAR 3.57 billion, driven by strong operating cash flows that offset a 31.0% increase in capital expenditure to SAR 4.77 billion. Total debt increased 54.6% to SAR 23.54 billion, primarily due to a sukuk issuance intended to fund strategic expansion and digital infrastructure projects.
The group maintained a quarterly dividend of SAR 0.55 per share, representing a SAR 2.7 billion return to shareholders, supported by a mobile subscriber base that grew 4.8% to 30.3 million. Operational

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	20,171	19,451	3.701	19,939	1.163
Gross Profit (Loss)	9,865	9,560	3.19	9,772	0.951
Operational Profit (Loss)	3,793	3,624	4.663	3,978	-4.65
Net Profit (Loss) Attributable to Shareholders of the Issuer	3,623	3,823	-5.231	3,696	-1.975
Total Comprehensive Income Attributable to Shareholders of the Issuer	2,968	4,346	-31.707	4,042	-26.571
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	40,110	38,660	3.75
Gross Profit (Loss)	19,637	18,658	5.247
Operational Profit (Loss)	7,771	7,207	7.825
Net Profit (Loss) Attributable to Shareholders of the Issuer	7,319	7,472	-2.047
Total Comprehensive Income Attributable to Shareholders of the Issuer	7,010	8,717	-19.582
Total Shareholders Equity (after Deducting Minority Equity)	84,986	82,699	2.765
Profit (Loss) per Share	1.47	1.5
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	stc reported revenue of SAR 20,171m in the 2nd quarter, an increase of 3.7%, which was primarily attributable to increases in Commercial unit revenue by 0.9%, Business unit revenue by 8.4%, Carriers and Wholesale unit revenue by 11.4%, and subsidiaries revenue by 3.5%.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	stc achieved a net profit of SAR 3,623m in the 2nd quarter, with net profit growth of 0.7% after excluding the non-recurring items in the current and the comparable quarter last year, mainly due to the following: - The gross profit increased by 3.2% to SAR 9,865m, compared to SAR 9,560m. - The operating profit increased by 4.7% to SAR 3,793m, compared to SAR 3,624m. - Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) increased by 3.9% to SAR 6,411m, compared to SAR 6,168m. - Total other (expenses) income amounted to SAR (16m), compared to SAR 66m during the comparable quarter last year, as a result of the following: 1. Recording net other (losses) gains amounting to SAR (62m), compared to SAR 82m. 2. An increase in finance cost by SAR 119m, and a decrease in finance income by SAR 69m. 3. In parallel: (a) an increase in net other income by SAR 144m. (b) an increase in net share in results of investments in associates and joint ventures by SAR 63m. (c) a decrease in early retirement program cost by SAR 42m. - Recording zakat and income tax expense amounting to SAR (49m), compared to a positive impact of SAR 216m in the comparable quarter last year, resulting from the reversal of zakat provision related to prior years during the current quarter and the comparable quarter last year, that was no longer required.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	stc reported revenue of SAR 20,171m in the 2nd quarter, an increase of 1.2%, which was primarily attributable to increases in Business unit revenue by 2.4%, Carriers and Wholesale unit revenue by 4.9%, and subsidiaries revenue by 1.2%.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	stc achieved a net profit of SAR 3,623m in the 2nd quarter, mainly driven by: - The gross profit increased by 0.9% to SAR 9,865m, compared to SAR 9,772m. - The operating profit reached SAR 3,793m, compared to SAR 3,978m. - Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) reached SAR 6,411m, compared to SAR 6,557m. - The decrease in total other expenses by SAR 42m, as a result of the following: 1. Recording net other income (expenses) amounting to SAR 187m, compared to SAR (2m). 2. A decrease in early retirement program cost by SAR 85m. 3. An increase in net share in results of investments in associates and joint ventures by SAR 25m. 4. An increase in finance income by SAR 20m, which was offset by the increase in finance cost by SAR 49m. 5. In parallel, net other (losses) gains amounting to SAR (62m) were recorded, compared to SAR 166m. - A decrease in zakat and income tax expense by SAR 103m, resulting from the reversal of zakat provision related to prior years during the current quarter, that was no longer required.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	stc reported revenue of SAR 40,110m during the 6 months period, an increase of 3.8%, which was primarily attributable to increases in Commercial unit revenue by 3.0%, Business unit revenue by 2.1%, Carriers and Wholesale unit revenue by 8.8%, and subsidiaries revenue by 4.6%.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	stc achieved a net profit of SAR 7,319m during the 6 months period, representing a growth of 6.3% after excluding the non-recurring items in the current and the comparable period last year, mainly driven by: - The gross profit increased by 5.3% to SAR 19,637m, compared to SAR 18,658m. - The operating profit increased by 7.8% to SAR 7,771m, compared to SAR 7,207m. - Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) increased by 5.5% to SAR 12,968m, compared to SAR 12,289m, with EBITDA margin improving by 1.7%, reaching 32.3%, which reflects the Group’s successful execution of its strategy, revenue growth, and enhanced operational efficiency. - The decrease in total other expenses by SAR 38m, as a result of the following: 1. Recording net other income (expenses) amounting to SAR 186m, compared to SAR (1m). 2. Recording net other gains amounting to SAR 104m, compared to net other (losses) of SAR (61m), as a result of recording non-recurring items in the comparable period last year. 3. An increase in net share in results of investments in associates and joint ventures by SAR 121m. 4. A decrease in early retirement program cost by SAR 28m. 5. In parallel, an increase in finance cost by SAR 157m, and a decrease in finance income by SAR 306m. - Recording zakat and income tax expense amounting to SAR (201m), compared to a positive impact of SAR 526m, mainly due to the reversal of zakat provision related to prior years, during the current and the comparable period last year, that was no longer required.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	-
Reclassification of Comparison Items	-
Additional Information	The total number of Treasury shares related to the Employees Stock Incentives Plan stood at 6,976 shares (in thousand) at the end of Q2 2026, and those shares are not entitled for dividends distribution. As a result, basic earnings per share (EPS) was calculated based on the weighted average number of ordinary shares in a total of 4,992,046 shares (in thousand) for the 2nd quarter of 2026. For more information, please refer to the investor relations press release attached to the announcement. We would like to draw the attention of our esteemed investors that they can access information on stc’s stock performance, dividend distributions, stc’s results and financial statements, and many more features through (stc Investor Relations application).
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