Saudi Telecom Company (7010) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 grew 3.8% year-over-year to SAR 40.11 billion, with broad-based growth across KSA and subsidiaries, and resilient operational and financial performance driven by disciplined execution and strong business momentum.

• Net profit for H1 2026 was SAR 7.50 billion, down 1.7% year-over-year, while net profit excluding non-recurring items rose 6.3%.

• Strategic partnerships and sustainability initiatives advanced, including agreements with ROSHN, HUMAIN, AST SpaceMobile, and the launch of the Kingdom's first sovereign cloud solution.

• Maintained market leadership in consumer, enterprise, and ICT segments in Saudi Arabia, and recognized as the most valuable telecom brand in the Middle East.

• Total assets as of June 30, 2026, stood at SAR 167.0 billion, with equity of SAR 87.7 billion.

Financial highlights

• Gross profit for H1 2026 was SAR 19.64 billion, up 5.3% year-over-year, with margin rising to 49.0%.

• EBITDA rose 5.5% year-over-year to SAR 13.0 billion, with margin up to 32.3%.

• Operating profit for H1 2026 was SAR 7.77 billion, up 7.8% year-over-year, with margin at 19.4%.

• Free cash flow surged 264.5% year-over-year to SAR 3.57 billion, despite a 31% increase in capex to SAR 4.77 billion.

• Quarterly dividend of SAR 0.55 per share, with a 9.7% yield and 142.9% payout ratio.

Outlook and guidance

• Focus remains on driving business momentum, efficiency, and strategic investments to support long-term growth.

• Dividend policy maintains a minimum of SAR 0.55 per share per quarter through Q3 2027, with potential for special dividends based on financial position and strategic needs.

• Continued commitment to attractive shareholder returns and prudent capital allocation.

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