stc Group announced today its preliminary financial results for the first quarter of 2026, recording revenues of 19,939 million Saudi Riyals, which reflects a growth of 3.8% compared to the same period last year. The group achieved a net profit of 3,696 million Saudi Riyals, marking an increase of 12% after excluding non-recurring items.
Regarding gross profits, they reached 9,772 million Saudi Riyals, up by 7.4%, while operating profits recorded 3,978 million Saudi Riyals, an increase of 11% compared to the first quarter of last year. Additionally, earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA) rose to 6,557 million Saudi Riyals, reflecting a growth of 7.1%.
Event Details
Engineer Olayan Al-Wateed, CEO of stc Group, confirmed that the group started 2026 with strong momentum in financial and operational performance, reflecting the success of its strategy in achieving tangible growth and enhancing its role in the digital economy. He noted that the results reflect a robust business model and an effective balance between investment opportunities, operational efficiency, and the development of digital infrastructure.
He also highlighted the group's ongoing implementation of its strategy to expand regional digital infrastructure through the Silklink project, which aims to establish a telecommunications infrastructure in Syria in partnership with the Syrian Sovereign Fund with an investment of 3 billion Saudi Riyals. This project is a significant step towards building a cross-border digital system by developing advanced infrastructure that connects Syria regionally and internationally through a fiber optic network extending over 4,500 kilometers.
Background & Context
Founded in 1998, stc Group has since become one of the leading companies in the telecommunications and technology sector in Saudi Arabia. The group aims to enhance its market position through innovation and the provision of advanced services that meet the increasing needs of customers. Its strategy aligns with Saudi Vision 2030, which aims to transform the Kingdom into a global digital hub.
In recent years, stc has witnessed significant expansion in its digital services, including improving telecommunications infrastructure and offering new services such as 5G, which has contributed to enhancing user experience and increasing demand for data services.
Impact & Consequences
The positive financial results of stc Group are a strong indicator of its ability to adapt to market changes and achieve sustainable growth. This success reflects the group's capacity to capitalize on investment opportunities and enhance its operational efficiency, contributing to strengthening its position in both regional and international markets.
Furthermore, the Silklink project will enhance stc's ability to provide advanced services in the Middle East, contributing to improved digital connectivity and creating new growth opportunities in the telecommunications and digital services sector.
Regional Significance
stc is a key partner in the digital transformation in Saudi Arabia, playing a vital role in supporting digital projects in the region. By enhancing digital infrastructure, the group contributes to improving connectivity between Arab countries, thereby enhancing opportunities for economic and commercial cooperation.
The group looks forward to achieving more accomplishments in the future, reflecting its commitment to supporting the digital economy and fostering innovation in the region.