stc Reports 17.5 Million KD in Net Profit for the First Half of 2026

Kuwait’s stc announced its results for the six-month period ended June 30, 2026, highlighting key achievements and financial and operational performance. In this regard, Eng. Moataz Al-Darab, the Company’s Chief Executive Officer, stated: “Kuwait’s stc recorded positive financial and operational results during the first half of 2026, reflecting the continuity of its business performance and its ability to adapt to operational changes, while continuing to focus on delivering sustainable value to shareholders and stakeholders. Despite challenges stemming from global economic shifts and geopolitical developments in the region during the period, the Company maintained its leading position and market share, relying on the efficient execution of its corporate strategy and its focus on strengthening core businesses, alongside developing new growth areas that support long-term financial and operational sustainability.

“In line with its commitment to meeting the growing needs of its customers, stc continued to expand its portfolio of digital solutions and deliver innovative products and services to individuals and the business sector, capitalizing on the rapid growth in demand for digital services, 5G technologies, and AI solutions. This enhances its readiness to seize future opportunities and keep pace with the rapid transformations in the telecommunications and IT sector, while delivering sustainable returns to its shareholders.

“Commenting on the key achievements stc attained during the first six months of 2026, Al-Darab noted: “During this period, Kuwait’s stc continued to prioritize employee safety and ensure business continuity by implementing a phased return-to-office plan following a period of remote work, ensuring a safe and healthy work environment while maintaining the highest levels of operational efficiency and service quality for customers without interruption. The Company also continued investing in strengthening its digital infrastructure and leveraging advanced technologies, including artificial intelligence, cloud computing, and cybersecurity solutions, thereby enhancing operational resilience and elevating the customer experience.

“In line with its firm commitment to sustainability and Environmental, Social, and Governance (ESG) principles, stc achieved a significant milestone by obtaining the ISO 20400:2017 certification for Sustainable Procurement, an international standard reflecting the integration of sustainability principles into procurement practices and supply chain management. This achievement underscores the Company’s dedication to adopting global best practices in responsible sourcing, enhancing transparency and risk management, and creating sustainable economic, environmental, and social value, thereby supporting the Company’s sustainability strategy and Kuwait Vision 2035.

“stc also continued implementing its corporate social responsibility initiatives, reaffirming its commitment to its role as a responsible digital partner. This included launching and executing community initiatives aimed at supporting various segments of society and promoting sustainable development. Additionally, the Company issued its Sustainability Report for the third consecutive year, highlighting its efforts and practices in the areas of environment, society, and governance, and reflecting its approach to enhancing transparency and creating sustainable value for all stakeholders, in alignment with the Company’s values and vision to achieve a positive and lasting societal impact.

“Commenting on the results achieved during the first half of 2026, Al-Darab said: “stc achieved solid financial results in the first half of 2026, supported by the flexibility of its operational model. Total revenues reached KD 168.9 million during the first six months of the year, compared to KD 174.6 million in the same period last year. This slight decline in revenues reflects the Company’s continued focus on improving revenue quality by concentrating on value-added activities and higher profit margins, thereby supporting profitability sustainability and enhancing the long-term resilience of its business model.

“Individual sector revenues accounted for 77% of total revenues, while the business sector contributed 23%. stc continues to implement strategic initiatives aimed at strengthening its position as an integrated digital enabler, by expanding its range of services and technical solutions to meet evolving customer needs and enhance its ability to achieve sustainable growth in a changing business environment.

“Al-Darab added: “These results led to a 1.8% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching KD 46.3 million during the first six months of 2026, compared to KD 45.5 million in the same period last year, supported by team efforts to enhance operational efficiency and improve the cost structure.

“Net profit reached KD 17.5 million (earnings per share of 18 fils), representing a 1.3% growth compared to KD 17.3 million (earnings per share of 17 fils) in the corresponding period of 2025. This performance reflects the effectiveness of the Company’s approach to cost control and revenue quality enhancement, alongside continued investment in future growth opportunities, capitalizing on the accelerating digital transformation in local and regional markets.

“These results underscore stc’s ability to achieve balanced and sustainable growth, supported by a focus on operational efficiency and enhancing customer value, contributing to continued growth amid market developments. It is worth noting that stc’s customer base reached approximately 2.3 million customers by the end of June 2026, reflecting continued customer confidence in the services and solutions provided by the Company.

“Commenting on the Company’s financial position as of June 30, 2026, Al-Darab stated: “Total assets reached KD 476.6 million by the end of the first half of 2026, while total shareholders’ equity stood at KD 219.2 million, reflecting the strength of the financial position and the stability of the Company’s capital structure. Amid ongoing economic transformations and geopolitical developments in the region, stc continues to adopt a flexible financial approach based on anticipating changes and leveraging available market opportunities, thereby enhancing sustainable value creation for shareholders and supporting the Company’s readiness for future growth, with continuous review of financial priorities aligned with its strategy and developments in the telecommunications and IT sectors.

“stc continues to execute its investment plans at a measured pace, targeting the enhancement of core businesses and diversification of revenue sources, leveraging the synergy between financial and operational performance to boost efficiency and strengthen the Company’s capacity for sustainable growth. The Company’s strong financial position continues to enable it to expand strategic projects and enhance operational resilience, while maintaining stable and sustainable financial performance.

“Furthermore, stc accelerated the integration of artificial intelligence into its operations throughout the year, contributing to improved business efficiency and enhanced work methods. Its application in network management, customer services, and internal operations has increased accuracy, accelerated response times, and optimized resource utilization, thereby supporting the delivery of high-quality services and creating greater value for customers and shareholders.

“stc considers human capital development a key priority, continuing to invest in developing the capabilities of its workforce and building a motivating work environment that supports high performance and innovation, leveraging its AI capabilities. The Company also continues to strengthen its governance and internal control systems in accordance with best practices, creating long-term value across all aspects of its business, thereby raising operational efficiency, enhancing transparency, and supporting business continuity in a dynamic and rapidly evolving environment.”