Saudi telecom firms hit record revenues, profits rise despite Q2 dip

Saudi Arabia's telecommunications sector has posted record revenues for the first half of 2026, reaching SAR55.53 billion ($14.8 billion). This represents a 3.59% increase compared to the same period last year, driven by robust growth in both consumer and enterprise services, alongside gains in carrier and wholesale revenue.

The sector's largest player, stc, accounted for a dominant 72.2% of the total revenue, generating SAR40.11 billion ($10.7 billion), a 3.75% rise year-on-year. Etihad Etisalat (Mobily) also demonstrated strong performance, with revenue climbing 5.35% to SAR10.12 billion ($2.7 billion). Mobile Telecommunications Company Saudi Arabia (Zain KSA) experienced a slight 0.7% decline, reporting SAR5.3 billion ($1.4 billion).

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the figures were reassuring. Combined sector profits exceeded SAR9.5 billion, up 2.3 percent, while revenue topped SAR55.5 billion, reflecting continued demand for telecommunications and technology services and confirming that the sector remains one of the Saudi stock market’s most stable and profitable.

Combined net profit for the three major operators (stc, Mobily, and Zain KSA) rose 2.33% to SAR9.5 billion in the first half of 2026. This increase was largely fueled by Mobily's 11.5% profit jump to SAR1.78 billion and Zain KSA's remarkable 84.1% surge to SAR405 million. STC's net profit saw a modest decrease of 2.05% to SAR7.32 billion.

Financial expert Dr. Suleiman Al-Humaid Al-Khalidi described the results as reassuring, highlighting continued demand for telecommunications and technology services. He noted Mobily's success in improving operational efficiency and diversifying services, and Zain KSA's strong profit increase attributed to restructuring and cost controls. While stc's profit saw a slight decline, Al-Khalidi stated it was not a cause for concern, given the company's substantial earnings.

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The company still generated more than SAR7.3 billion in earnings and accounted for mo