Saudi Telecom Company (7010) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2025, reached 57.92 bn, up 2.6% year-over-year, marking a record high for this period.

• Net profit for the nine months was 11.58 bn, up 3.1% year-over-year, and 14.84% higher when excluding non-recurring items.

• Strategic partnerships and investments advanced digital transformation, local content, and infrastructure expansion, including a 37.5 bn commitment by center3 and a 1.2 bn partnership with Red Sea Global.

• The group finalized the sale of its TAWAL tower business, resulting in a significant gain in 2024 and a new equity method investment in DIIC.

• A new dividend policy was implemented, increasing the minimum quarterly dividend to 0.55 per share.

Financial highlights

• Gross profit for the nine months was 27.91 bn, nearly flat year-over-year.

• Operating profit for the nine months was 10.83 bn, down 5.4% year-over-year.

• EBITDA for the nine months increased 0.7% year-over-year, excluding non-recurring items up 5.72%.

• Free cash flow increased 12% to 5.22 bn, while net cash from investing activities surged 596% to 8.49 bn.

• Capex for the period was 6.08 bn, with a Capex intensity ratio of 10.49%.

Outlook and guidance

• Committed to a fixed quarterly dividend of 0.55 per share through Q3 2027, with potential for special dividends.

• Focus remains on digital transformation, infrastructure expansion, and maximizing shareholder value.

• Ongoing investments in digital infrastructure and AI are expected to reinforce the Kingdom's position as a regional digital hub.