Saudi Telecom Company (stc Group) reported a net profit of SAR 14.83 billion for the full year 2025, reflecting a year-on-year decline driven almost entirely by the absence of a large non-recurring gain that had significantly inflated its 2024 results. The figure, equivalent to approximately $3.95 billion, positions stc firmly as one of the most profitable listed companies in the Kingdom and highlights the underlying resilience of its core telecommunications and digital services business.
The 2024 Comparison Base Explains the Gap
The reported 39.94 percent decline from SAR 24.69 billion in 2024 is a product of accounting base effects rather than a deterioration in operating performance. The prior year’s profit was substantially elevated by an exceptional, non-recurring item — gains related to stc’s stake transaction involving Telefónica — which boosted 2024 results to levels that were always expected to normalise. Stripping out those one-off items, the company’s underlying business continued to grow, with stc’s revenue in Saudi Arabia expanding by approximately 3 percent year-on-year during the same period, supported by strong momentum in commercial, business, and carrier segments. The fourth quarter of 2025 contributed SAR 3.25 billion to the annual total.
A Sector Growing at Scale
The results come against a backdrop of a Saudi telecom sector that generated approximately $28 billion in combined revenues in 2025, consolidating the industry’s position as one of the most productive in the Middle East. stc, as the dominant operator and fifth-largest company listed on the Tadawul by market capitalisation, continues to anchor that performance. The group’s diversification into digital infrastructure, cloud services, and cybersecurity through subsidiaries such as SOLUTIONS and stc Play reflects the broader Vision 2030 ambition to position Saudi Arabia as a leading digital economy in the region.
Looking Ahead to 2026
With the exceptional 2024 items now fully absorbed into the comparison base, analysts covering stc expect the 2026 financial year to present a cleaner year-on-year picture. The company’s capital expenditure programme in 5G infrastructure, fibre networks, and enterprise digital services remains among the largest in the region, and management has indicated continued confidence in sustaining organic revenue growth across its key business lines in the Kingdom and its international operations.
