stc Group: Sustainable growth, cost-efficiency program drive surge in net profit to $2 billion in H1 2025
Eng. Olayan Alwetaid
, CEO of stc Group, said the group continued to deliver excellent performance through its commitment to its strategy and success in capitalizing on available opportunities within the ICT sector.
He also noted that the focus on financial discipline and improving the efficiency of capital management were key factors in supporting business stability, enhancing the group's readiness to adapt to changes, and expanding into future growth avenues with confidence and sustainability.
Revenues rise 2.09 percent to SAR38.66 billion
During the first half of 2025, stc Group achieved revenue growth of 2.09 percent to SAR38.66 billion. Meanwhile, gross profit grew 6.61 percent year-on-year to SAR18.65 billion.
Additionally, the cost-efficiency program contributed effectively to enhancing operational and financial efficiency, which positively impacted the company's performance, resulting in EBITDA growth of 6.1 percent with an increase in EBITDA margin by 3.9 percent to reach 31.8 percent.
stc Group also revealed that its operating profit for H1 2025 reached SAR7.207 billion, up 2.28 percent compared to the same period last year.
Alwetaid noted that the growing demand for the group's services is a testament to the community's trust in the efficiency of its digital solutions. This was demonstrated by the number of STC Bank customers surpassing 3 million within a short period since its launch at the beginning of 2025, reflecting the accelerated growth in the adoption of digital banking services and embodying the group's growing role in developing the financial services sector.
stc provides record internet speeds serving more than 1.6 million pilgrims
The CEO of stc Group also reflected on the successful
Hajj season
, where stc deployed the latest technologies and digital solutions, including advanced AI solutions, to facilitate Hajj rituals and enhance the quality of services provided to pilgrims.
During the season, the group provided record internet speeds serving more than
1.6 million pilgrims
and provided services to 1.49 million stc network users, which led to exceptional results, as stc's network recorded the highest traffic hour in its history in Muzdalifah, with a 64 percent increase in data usage and a 129 percent surge in 5G network traffic compared to the previous year.
Meanwhile, the user experience index rose by 25 percent, underscoring the network's ability to support one of the world's most significant mass crowd movements.
First operator in the region to commercially activate low-frequency spectrum
As part of its efforts to expand coverage and provide high-speed connectivity in both urban and remote areas to bridge the digital divide and ensure the delivery of reliable high-quality communication services, stc's 5G network now covers more than 9,500 sites across the Kingdom.
The group has also continued to enhance its network technically by activating the low-frequency spectrum (600 MHz – N71) recently acquired, becoming the first operator in the region to activate this band commercially. This enables users in peripheral areas to access advanced communication services and high-speed connections, thanks to its superior coverage and penetration capabilities.
In addition, stc Group has adopted the 5G standalone technology, which allows full utilization of advanced 5G features such as reduced latency and customized service quality through network slicing. This marks a pivotal step in enabling many vital sectors and strengthening the Kingdom's position in adopting and developing cutting-edge global technologies.
Group inks strategic agreements to accelerate digital transformation
In line with its commitment to maintaining its leadership in the fields of telecommunications and information technology, stc Group signed several strategic agreements over the past period. In the field of cloud computing, the group signed a partnership agreement with Oracle for a value of more than SAR2 billion, aimed at accelerating digital transformation across the Kingdom through the development of advanced AI-powered cloud infrastructure and the provision of sovereign cloud solutions via the Oracle Alloy platform, hosted at center3's data centers.
Additionally, stc signed a strategic partnership with Singtel Group to collaborate across several areas, including digital platform integration, developing human capabilities, IoT solutions and expansion of subsea cable systems. These partnerships contribute to strengthening stc Group's position as a comprehensive digital provider across the region.
Read: stc Group expands Saudi Arabia's 5G network to over 9,500 sites, enhances connectivity during 1446 AH Hajj season
stc's ESG rating rises to 'A'
Finally, stc Group released its sixth Sustainability Report for the year 2024, which showcases the progress made across sustainability, environmental and social responsibility, and governance. The report also highlights the group's efforts to enhance environmental performance and human capital development through digital innovation and upholding the principles of effective governance and ethical excellence.
In recognition of these efforts, stc's ESG rating was upgraded from 'BBB' to 'A' in the latest MSCI ratings, reflecting the group's commitment to adopting the highest local and international sustainability standards and practices.
These initiatives reaffirm sct Group's role as a key enabler of the national economy by supporting job creation, business growth, talent and skill enhancement, community well-being and the advancement of digital infrastructure. stc Group remains committed to advancing its sustainability efforts and continuing to maximize its positive impact on society, the environment and the economy by adopting sustainability principles across its various business areas.
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