stc Reports Over SAR 14.8 Billion Profit for 2025, Approves SAR 2.74 Billion Q4 Dividend at SAR 0.55 per Share

Riyadh | EcoPulse24

Saudi Telecom Company stc (7010) announced its consolidated financial results for the year ended December 31, 2025, alongside approving a cash dividend for the fourth quarter. This move reflects the company's commitment to a stable quarterly dividend policy for three years running.

2025 Annual Results: Operational Growth Offset by Lower Net Profit

Understanding the Profit Decline

The almost 40% drop in net profit is due to a non-recurring gain in 2024 from the sale of controlling stakes in subsidiaries (Tawal and Digital Infrastructure), which amounted to SAR 13.97 billion. Excluding these, stc noted an actual net profit growth of 12.5% in 2025, supported by:

• Customer unit revenue growth of 3.4%
• Carrier and operator unit revenue growth of 10.8%
• EBITDA rising to SAR 24.47 billion (+6.1% after adjustments)
• Improved other expenses due to lower early retirement costs
• Positive zakat and income tax impact of SAR 466 million

EcoPulse24 Analysis: The data shows 2025 as a transitional year from exceptional capital gains in 2024 to more sustainable operational performance. The real growth is operational, not investment-driven.

Dividend Policy: Clear Quarterly Commitment

stc announced a Q4 2025 cash dividend, consistent with the policy adopted since Q4 2024.

Treasury shares not eligible for dividends amount to 10.2 million shares (allocated for incentive programs).

Expected Annual Yield

With SAR 0.55 per quarter, annual dividends total SAR 2.20 per share. At a price of SAR 44.8 per share:

Approximate dividend yield = 4.9%

This is relatively attractive within the regional telecom sector.

Deeper Financial Analysis

• Gross profit margin ≈ 48.4%
• Operating margin ≈ 18.5%
• Net profit margin ≈ 19%

These strong margins reflect a stable business model. The 6.7% drop in equity is linked to high dividend payouts and the effect of investment items in 2024. EBITDA remains stable and growing, with improved operating expenses and fewer non-recurring items, making earnings more predictable.

Market Overview

• Price: SAR 44.8
• Change: 0%
• Volume: 1.7 million shares
• Value: SAR 76.3 million

The stock trades in a relatively stable range, with dividends supporting long-term investors.

Strategic Implications

1️⃣ The company returns to operational profitability after an exceptional year.
2️⃣ The dividend policy boosts the stock's appeal as a recurring income source.
3️⃣ The Saudi telecom sector shows revenue stability despite competition.
4️⃣ Growth in carriers and operators signals regional expansion and a stronger digital infrastructure.

Risks to Monitor

• Declining financing income
• Potential future volatility in financing costs
• Any regulatory or competitive pressures in the telecom sector

EcoPulse24 Analysis

The 2025 results confirm stc’s shift from an “exceptional asset sale year” to “disciplined operations.” The apparent net profit drop reflects the absence of large capital gains, not business weakness. With a near-5% dividend yield and stable EBITDA, the stock remains in the “stable income with moderate growth” category, rather than a high-risk growth stock.