stc Reports KWD 9.2 Million Net Profit in First Quarter

Kuwait’s stc announced its results for the three-month period ending March 31, 2026, highlighting key achievements and financial and operational performance. The company reported net profits of 9.2 million Kuwaiti dinars, representing a 1.6% increase compared to the same period in 2025, with earnings per share of 9 fils, while revenues reached 85.3 million dinars. The company achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) of 23.1 million dinars, total assets of 497 million dinars, and shareholders’ equity of 210.9 million dinars. Book value per share stood at 211 fils, and the customer base reached 2.3 million.

Positive Performance

In this regard, stc’s CEO, Eng. Mutaz Al-Darab, stated: “stc continued to deliver positive financial and operational performance during the first quarter of 2026, supported by its updated corporate strategy, which focuses on strengthening the company’s core activities and accelerating growth in new areas that contribute to creating sustainable value.”

He added: “Despite the challenges associated with global economic shifts and recent geopolitical tensions in the region, stc succeeded in consolidating its leading position and maintaining its market share within a highly competitive sector.”

He continued: “This performance underscores stc’s ability to adapt and continue delivering positive results that reflect the strength of its business model and the efficiency of its strategic plan, aimed at generating added value and sustainable returns for its shareholders while ensuring business continuity.”

He clarified: “stc has been keen to expand its provision of integrated digital solutions and innovative products that meet the growing needs of individual and business customers amid current conditions, leveraging the accelerating demand for digital services, advanced fifth-generation (5G) technologies, and artificial intelligence, while keeping pace with rapid transformations in the business environment with confidence and proactiveness.”

Key Achievements

Commenting on stc’s key achievements during the first three months of 2026, Al-Darab said: “Amid challenges affecting various sectors, stc reaffirmed its firm commitment to supporting its customers and partners by ensuring business continuity without any impact on quality. This was achieved by leveraging advanced technologies such as artificial intelligence, cloud computing, and cybersecurity solutions, enhancing operational resilience, enabling remote work, providing rapid technical support, and delivering uninterrupted services through proactive measures to stand by its individual and institutional customers.”

He added that, amid ongoing geopolitical tensions and surrounding challenges, stc continued to execute its projects without interruption, maintaining business momentum and operational efficiency supported by the company’s strong infrastructure and specialized teams.

He noted that the company did not halt its strategic progress, as its subsidiaries continued signing strategic agreements with business sector clients, alongside continuing the execution and delivery of projects according to approved schedules.

He concluded: “This reflects stc’s firm commitment to supporting its partners and enabling them to achieve business continuity efficiently, underscoring its ability to operate with high flexibility and operational stability under various circumstances.”

“stc remains committed to helping institutions overcome challenges and emerge stronger, more resilient, and better prepared for the future.”

Financial Results

Commenting on the results achieved during the first quarter of 2026, Al-Darab said, “stc achieved solid financial results in Q1 2026, supported by the resilience of its operational model. Total revenues reached KD 85.3 million during the first three months of the year, compared to KD 87.4 million in the same period last year. This slight decline reflects a shift in the revenue mix toward activities with better profit margins, as part of the company’s strategy to enhance revenue quality and profitability sustainability.”

He added, “Consumer sector revenues accounted for 75% of total revenues, while the business sector contributed 25%. stc continues its efforts to develop its business model by enhancing digital services and providing integrated technology solutions that meet the needs of various sectors, thereby supporting income diversification, strengthening sustainable growth, and enhancing the company’s ability to adapt to market changes.”

Al-Darab further stated, “These results led to a 3.5% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching KD 23.1 million during the first three months of 2026, compared to KD 22.3 million in the same period last year, supported by the efforts of the teams in enhancing operational efficiency and improving the cost structure.”

He continued, “As for net profit, it reached KD 9.2 million (earnings per share of 9 fils), representing a 1.6% growth compared to KD 9.1 million (earnings per share of 9 fils) in the corresponding period of 2025. This performance reflects the company’s success in managing costs and balancing the improvement of revenue quality with continued investment in future growth opportunities, alongside benefiting from the accelerating pace of digital transformation in the local market and the region.”

He noted that these results, along with the continuous focus on efficiency and innovation, highlight stc’s ability to enhance profitability and achieve sustainable growth. It is worth noting that stc’s customer base reached approximately 2.3 million customers by the end of March 2026.

Commenting on the company’s financial position as of March 31, 2026, Al-Darab said, “Total company assets amounted to KD 497 million at the end of Q1 2026, while total shareholders’ equity reached KD 210.9 million, reflecting the strength of the financial position and the stability of the company’s capital structure.”

Amid current economic instability and geopolitical fluctuations, stc continues to direct its financial strategy toward seizing available market opportunities, thereby supporting the creation of added value and sustainable returns for shareholders, while continuously reviewing its financial priorities in alignment with its strategic direction and developments in the telecommunications and information technology sectors.

Enhancing Core Operations

stc’s investment plans focus on strengthening its core operations and diversifying revenue sources, leveraging the integration between its financial and operational strategies to enhance efficiency and its ability to achieve sustainable growth.

The company’s strong financial position enables it to support the implementation of its strategic projects and adapt to market changes, while maintaining the sustainability of its financial performance. stc continues to invest in its human resources, considering them one of the key pillars of its success, by developing their capabilities and providing a supportive work environment, alongside adopting best practices in governance and internal controls. These efforts enhance transparency and institutional efficiency and support business continuity in a dynamic operating environment.

Corporate Social Responsibility Initiatives

During this period, stc has remained committed to advancing and strengthening its corporate social responsibility initiatives. The company reaffirmed its societal commitment by launching a range of initiatives, including providing free internet hours to support remote work and learning, organizing blood donation campaigns in recognition of its social role, offering free roaming services for business sector customers outside Kuwait, and ensuring uninterrupted availability of digital payment services. These actions reflect stc’s role as an active digital partner in supporting the sustainability of vital community services.

stc’s collaboration with Kuwait Airways to support the operation of return flights for Kuwaiti citizens, its participation in national awareness campaigns to express gratitude to frontline workers, and its cooperation with various institutions to support and assist frontline efforts, all underscore its commitment to standing alongside the community under all circumstances.