Saudi Telecom Company (7010) Q2 2025 earnings summary

Executive summary

• Achieved 2.09% revenue growth and 13.38% net profit increase for H1 2025 year-over-year, reflecting strong operational and financial 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 and launched STC Bank as a digital bank in Saudi Arabia.

• Entered major strategic partnerships with AWS, Oracle, Kyndryl, and Singtel to drive digital transformation and innovation.

• ESG rating upgraded to "A" by MSCI, reflecting enhanced sustainability and governance practices.

Financial highlights

• H1 2025 revenue reached SAR 38.66 billion, up 2.09% year-over-year; Q2 2025 revenue up 2.60% year-over-year.

• Net profit for H1 2025 was SAR 7.47 billion, a 13.38% increase year-over-year; Q2 2025 net profit up 15.71% 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%.

• Total shareholders' equity increased 8.24% to SAR 82.70 billion; total debt decreased 36.18% to SAR 15.22 billion.

• Free cash flow declined 63.65% year-over-year to SAR 1.25 billion.

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.