Saudi Telecom Company (7010) investor relations material

Executive summary

• Achieved strong operational and financial momentum in Q1 2026, with revenue up 3.8% YoY to SAR 19.94 billion and net profit up 12.0% YoY (excluding non-recurring items), reflecting robust execution and shareholder focus.

• EBITDA increased 7.1% YoY to SAR 6.557 billion, and operating profit rose 11.0% YoY to SAR 3.978 billion.

• Total assets grew to SAR 166.16 billion as of March 31, 2026.

• Enhanced brand value, ranked as the Middle East's most valuable telecom brand and third globally.

• Continued execution of digital infrastructure strategy, including the Silklink project in Syria and support for major national events.

Financial highlights

• Q1 2026 revenue reached SAR 19.939 billion, up 3.8% YoY; gross profit rose 7.4% YoY to SAR 9.772 billion, with margin at 49.0%.

• Operating profit increased 11.0% YoY to SAR 3.978 billion, margin at 20.0%.

• Net profit attributable to equity holders was SAR 3.696 billion, up 12.0% YoY (excluding non-recurring items); net profit margin at 16.3%.

• Cash and equivalents at period end were SAR 15.4 billion; Capex was SAR 1.7 billion, with Capex intensity at 8.5%.

• Free cash flow surged 494% to SAR 3.885 billion.

Outlook and guidance

• Management expects continued growth through digital infrastructure expansion and regional projects, with a strategic focus on sustainable, competitive long-term growth.

• Dividend policy maintains a minimum of SAR 0.55 per share per quarter through Q3 2027, with potential for special dividends.

• The group continues to monitor regional geopolitical developments and maintains a flexible operating model to manage risks.