Saudi Telecom Company (stc)
7010 · Saudi Exchange · Q3 2026, period ended 2026-09-30 · announced 2026-10-28 15:39
Revenue SAR 19,985m (+3.7%); net profit SAR 3,599m (−12.4%)
Net profit fell 12.4% to SAR 3,599m as zakat/tax swung to a SAR 156m expense from a SAR 157m credit, with operating profit down 3.2%.
THE QUARTER
SARQ3 2026Year agoChgLast qtrChg
Revenue19,985m19,264m+3.7%20,171m−0.9%
Gross profit9,724m9,251m+5.1%9,865m−1.4%
Operating profit3,511m3,627m−3.2%3,793m−7.4%
Net profit3,599m4,107m−12.4%3,623m−0.7%
Gross margin 48.7% against 48.0% (+63bp); 48.9% last quarter
Operating margin 17.6% against 18.8% (−126bp); 18.8% last quarter
Net margin 18.0% against 21.3% (−331bp); 18.0% last quarter
SHARE PRICE
Last SAR 41.62 (5 Nov 26) · 52-week range SAR 39.86–45.10, 34% of the way up
StockTASIDifference
Since results+0.8%+1.1%−0.3 pts
1 month−2.8%−4.7%+1.9 pts
Year to date−3.2%−3.8%+0.6 pts
1 year−6.7%−10.3%+3.6 pts
Price returns from Saudi Exchange; dividends not included. Since results: from the close before the filing.
KEY RATIOS
NowBefore
Gross margin48.7%48.0%
a year ago
Operating margin17.6%18.8%
a year ago
Net margin18.0%21.3%
a year ago
EBITDA (9M)SAR 19,150mSAR 18,497m
9M 2025
EBITDA margin31.9%31.9%
9M 2025
Net debt / EBITDA0.61x0.13x
9M 2025
Capex / revenue12.9%10.5%
9M 2025
Dividend payout (9M)75.1%–
EPS (9M)SAR 2.19SAR 2.32
9M 2025
Operating cost ratio31.1%29.2%
a year ago
From the filing, or worked out from it with the arithmetic checked by code. Quarterly figures annualised where marked.
UNDERLYING PROFIT
•The company says 9M net profit growth was 2.6% excluding non-recurring items in both periods, versus reported 9M net profit of SAR 10,918m, down 5.7%.
•Q3 net profit grew 3.6% on Q2 after excluding non-recurring items in the previous quarter; reported Q3 net profit was SAR 3,599m versus SAR 3,623m, down 0.7%.
•Excluding the prior-year SAR 157m zakat reversal, Q3 2025 net profit was SAR 3,950m, so Q3 2026's SAR 3,599m was 8.9% lower; current quarter also has land-sale gains.
•Q3 zakat/tax was SAR 156m expense versus SAR 157m credit a year ago, a SAR 313m swing against a SAR 508m net profit decline.
•Q3 net other gains rose SAR 62m YoY, mainly land sales, partly offsetting lower operating profit.
REVENUE AND SEGMENTS
•Q3 revenue rose 3.7% to SAR 19,985m, driven by an 18.5% increase in subsidiaries' revenue, the company says.
•QoQ revenue fell 0.9% to SAR 19,985m from SAR 20,171m; the company cites Commercial unit +0.2% and subsidiaries +5.0%.
•9M revenue rose 3.7% to SAR 60,096m, with Commercial +2.0%, Carriers & Wholesale +5.1% and subsidiaries +9.0%.
•Mobile subscribers rose 4.8% to 30.6m, fixed 4.0% to 6.2m, fiber households 7.0% to 3.95m and 5G towers 31.5% to 12.38K.
•Revenue has grown year on year for 9 consecutive quarters.
COSTS, EBITDA AND MARGINS
•Gross profit rose 5.1% to SAR 9,724m, lifting gross margin to 48.7% from 48.0%; operating profit fell 3.2% to SAR 3,511m as operating margin slipped to 17.6% from 18.8%.
•Costs below gross profit rose 10.5% to SAR 6,213m while revenue rose 3.7%, so costs outpaced revenue.
•Gross profit rose SAR 473m but operating profit fell SAR 116m, so costs below gross profit absorbed SAR 589m more.
•9M EBITDA rose 3.5% to SAR 19,150m, with margin flat at 31.9%; 9M operating profit rose 4.1% to SAR 11,282m.
BELOW OPERATING PROFIT
•Q3 finance income fell SAR 70m and finance cost rose SAR 124m, a SAR 194m net drag; associates/JVs added SAR 52m and net other gains SAR 62m.
•Q3 zakat/tax was SAR 156m expense versus SAR 157m credit prior, a SAR 313m swing; it accounted for most of the SAR 508m net profit decline.
•QoQ other income rose SAR 351m, helped by SAR 673m net other gains versus SAR (62)m, mainly land sales and STV LP revaluation.
•9M finance income fell SAR 376m and finance cost rose SAR 281m, a SAR 657m net drag; 9M zakat/tax swung to SAR 357m expense from SAR 683m credit.
•9M net share in associates/JVs rose SAR 173m and net other gains rose SAR 227m, mainly land sales and a prior-year Telefonica-related loss.
BALANCE SHEET
•Net debt/EBITDA rose to 0.61x from 0.13x, with capex up 27.4% and 9M EBITDA SAR 19,150m.
CASH FLOW
•9M capex rose 27.4% to SAR 7,745m, equal to 12.9% of revenue versus 10.5% a year ago.
•The company declared a Q3 dividend of SAR 0.55 per share, bringing 9M distributions to SAR 8.2bn, or 75.1% of 9M net profit.
QUALITY AND RISK FLAGS
•Reported Q3 net profit fell 12.4% while revenue rose 3.7%; the gap comes from operating costs +10.5% and a SAR 313m zakat/tax swing.
•Q3 net other gains rose SAR 62m YoY and QoQ net other gains were SAR 673m versus SAR (62)m, including land sales and STV LP revaluation gains.
•Net debt/EBITDA rose to 0.61x from 0.13x while 9M capex rose 27.4% to SAR 7,745m.
•9M reported net profit fell 5.7%, but the company's 2.6% growth is adjusted for non-recurring items in both periods.
•9M zakat/tax swung by SAR 1,040m to a SAR 357m expense from a SAR 683m credit.
WHAT THE COMPANY SAYS NEXT
•The company says the Q3 dividend is SAR 0.55 per share, in line with its dividend policy, bringing 9M distributions to SAR 8.2bn.
•The company says its high-speed internet initiative is 95% complete, covering more than 4K residential communities and over 410K beneficiaries, with more than 12K km of secondary roads.
LAST EIGHT QUARTERS
SARRevenueYoYNet profitNet mgn
Q4 24ᶜ19,266m+11.4%13,456m *69.8%
Q1 2519,210m+1.6%3,649m19.0%
Q2 2519,451m+2.6%3,823m19.7%
Q3 2519,264m+3.6%4,107m21.3%
Q4 25ᶜ19,895m+2.4%3,249m16.3%
Q1 2619,939m+3.8%3,696m18.5%
Q2 2620,171m+3.7%3,623m18.0%
Q3 2619,985m+3.7%3,599m18.0%
* Profit far out of line with revenue that quarter: usually a one-off (an asset sale or a revaluation). Check the filing.
ᶜ Fourth quarter: the full year less the first nine months.
GCC Watch (pilot) · figures as the company reported them on Saudi Exchange · bullets written by an AI model from the statements and the company's own words, every figure checked by code · not investment advice · the announcement