Saudi Telecom Company (7010) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue grew 2.09% year-over-year to SAR 38.66 billion, with Q2 2025 revenue up 2.60% year-over-year; net profit for H1 2025 rose 13.38% to SAR 7.47 billion, and Q2 2025 net profit increased 15.71% year-over-year, reflecting strong operational efficiency.

• Recognized as the most valuable telecom brand in the Middle East for the fifth consecutive year and 9th globally.

• Expanded 5G network to over 9,500 sites, launched STC Bank as a digital bank, and achieved record network performance during Hajj season.

• Entered major strategic partnerships with AWS, Oracle (over SAR 2 billion), Kyndryl, and Singtel to drive digital transformation and innovation.

• Comprehensive income for H1 2025 totaled SAR 8.87 billion, up 36% year-over-year.

Financial highlights

• Gross profit for Q2 2025 rose 8.24% year-over-year to SAR 9.56 billion, with gross margin improving to 49.15%; H1 2025 gross profit was SAR 18.66 billion, up 6.6% year-over-year.

• EBITDA for Q2 2025 grew 7.05% year-over-year to SAR 6.17 billion, with margin up 4.34% to 31.71%; EBITDA margin for H1 2025 improved by 3.9% to 31.8%.

• Operating profit for Q2 2025 increased 2.58% year-over-year to SAR 3.62 billion; H1 2025 operating profit was SAR 7.21 billion, up 2.3% year-over-year.

• Basic EPS from continuing operations for H1 2025 was SAR 1.50, up from SAR 1.24 in H1 2024.

• Free cash flow declined 63.65% year-over-year to SAR 1.25 billion; net cash from operating activities fell 36.10% to SAR 4.90 billion, while investing activities cash flow rose 348.03%.

Outlook and guidance

• Committed to paying SAR 0.55 per share quarterly dividend through Q3 2027, with potential for special dividends based on financial position and outlook.

• Focused on strategic investments, digital transformation, and expanding digital infrastructure in line with Saudi Vision 2030.

• Ongoing expansion of 5G and digital banking services expected to support long-term performance.