stc reports 17.5 million KD in net profit during the first half

Total revenues reach KD 168.9 million... Earnings per share stand at 18 fils

Mutaaz Al-Darab: Company results reflect the continuity of its business performance and its ability to adapt to operational changes and achieve sustainable value

Kuwait Telecom Company (stc), the leader in enabling digital transformation and providing innovative services and platforms to customers in Kuwait, announced its results for the six-month period ended June 30, 2026, highlighting key achievements and financial and operational performance.

Mutaaz Al-Darab, the Company’s Chief Executive Officer, stated: “Kuwait Telecom Company (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 achieving sustainable value for shareholders and stakeholders.

Despite challenges stemming from global economic shifts and geopolitical developments witnessed 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 its core businesses, alongside developing new growth areas that support the long-term sustainability of its financial and operational performance.

stc continued to expand its portfolio of digital solutions and provide innovative products and services to individuals and the business sector, capitalizing on the rapid growth in demand for digital services, fifth-generation (5G) technologies, and artificial intelligence solutions. This enhances its readiness to seize future opportunities and keep pace with the rapid transformations in the telecommunications and information technology sectors, while delivering sustainable returns to its shareholders.”

Al-Darab added that Kuwait Telecom Company (stc) continued to prioritize the safety of its employees and ensure business continuity through a phased plan for returning to the workplace after a period of remote work. This ensures a safe and healthy work environment while maintaining the highest levels of operational efficiency and service quality for its customers without interruption. The Company also continued to invest in strengthening its digital infrastructure and leveraging advanced technologies, including artificial intelligence, cloud computing, and cybersecurity solutions, thereby supporting its operational resilience and enhancing 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. This is an international standard that reflects the integration of sustainability principles into purchasing practices and supply chain management. This achievement underscores the Company’s dedication to adopting global best practices in responsible procurement, enhancing transparency, managing risks, and creating sustainable economic, environmental, and social value, thereby supporting the Company’s sustainability strategy and Kuwait Vision 2035.

stc also continued to implement its corporate social responsibility initiatives, reaffirming its commitment to its role as a responsible digital partner. This was achieved through the launch and execution of community programs aimed at supporting various segments of society and promoting sustainable development, alongside the release of its sustainability report for the third consecutive year.

Commenting on the results achieved during the first six months of 2026, Al-Darrab stated: “stc delivered strong financial results in the first half of 2026, underpinned by the resilience of its operating model. Total revenues amounted to KWD 168.9 million during the first six months of the year, compared to KWD 174.6 million in the same period last year. This slight decline in revenues reflects the company’s ongoing focus on improving revenue quality by concentrating on value-added activities and higher profit margins, thereby supporting profitability sustainability and strengthening 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 its strategic initiatives aimed at enhancing its position as an integrated digital enabler. This is being achieved by expanding the scope of its services and technological solutions, which supports meeting evolving customer needs and strengthens its ability to achieve sustainable growth in a dynamic business environment,” he added.

Al-Darrab further noted, “These results led to a 1.8% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching KWD 46.3 million during the first six months of 2026, compared to KWD 45.5 million in the same period last year. This growth was supported by the efforts of work teams in enhancing operational efficiency and optimizing the cost structure.”

Net profit reached KWD 17.5 million (earnings per share of 18 fils), representing a 1.3% increase compared to KWD 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 its continued investment in future growth opportunities, leveraging the accelerating digital transformation in local and regional markets.

These results underscore stc’s ability to achieve balanced and sustainable growth, driven by a focus on operational efficiency and enhancing the value delivered to customers, 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 ongoing customer confidence in the services and solutions provided by the company.

Commenting on the company’s financial position as of June 30, 2026, Al-Darraj stated: “Total assets reached KD 476.6 million by the end of the first half of 2026, while total shareholders’ equity amounted to KD 219.2 million, reflecting the strength of the company’s financial position and the stability of its capital structure.

stc continues to implement its investment plans at a measured pace aimed at strengthening its core businesses and diversifying revenue streams, leveraging the integration between financial and operational performance to enhance efficiency and elevate the company’s capacity to achieve sustainable growth. The company’s strong financial position continues to enable it to expand its strategic projects and strengthen operational resilience, while maintaining stable and sustainable financial performance.

Furthermore, stc has accelerated the integration of artificial intelligence into its operations throughout the year, contributing to improved business efficiency and enhanced work methods. The deployment of AI 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 delivering greater value to customers and shareholders.

stc considers human capital development a key priority, continuing to invest in enhancing the capabilities of its workforce and building an inspiring work environment that supports high performance and innovation, leveraging its expertise in artificial intelligence. The company also continues to strengthen its governance and internal control systems in line with best practices, creating long-term value across all aspects of its business, thereby improving institutional efficiency, enhancing transparency, and supporting business continuity in a dynamic and rapidly evolving environment.”