Saudi Telecom Company (7010) Q2 2026 earnings summary

Executive summary

• Revenue grew 3.8% year-over-year to 40,110 million for H1 2026, with broad-based growth across KSA and subsidiaries.

• EBITDA increased 5.5% to 12,968 million, with margin improving to 32.3%.

• Net profit excluding non-recurring items rose 6.3%, despite higher finance costs; reported net profit was 7,319 million, down 2.1% year-over-year.

• Subscriber growth continued, with KSA mobile subscribers up 4.8% to 30.3 million and fixed subscribers up 3.0% to 6.1 million.

• Strategic partnerships advanced, including agreements with ROSHN, HUMAIN, and AST SpaceMobile, and the launch of the Kingdom's first sovereign cloud solution.

Financial highlights

• Gross profit increased 5.3% to 19,637 million, outpacing revenue growth.

• Free cash flow surged 264.5% to 3,568 million, driven by higher operating cash flow.

• Capex rose 31.0% to 4,773 million, reflecting continued investment in infrastructure.

• Net cash from operating activities increased 80.4% to 8,342 million.

• Total assets grew 10.0% to 166,997 million; total debt increased 54.6% to 23,537 million.

Outlook and guidance

• Management remains focused on sustainable growth, operational efficiency, and delivering shareholder value.

• Strong balance sheet and credit ratings support long-term growth ambitions.