Riyadh: Saudi Telecom Company (Stc) has reported a net profit of approximately SR3.7 billion ($986.48 million) for the first quarter of 2026, marking a 1.3 percent increase compared to the same period last year and surpassing analysts' forecasts compiled by Bloomberg of SR3.27 billion.

The company's revenues also exceeded expectations, reaching SR19.9 billion, up from anticipated SR19.7 billion and representing the highest quarterly revenue since 2003.

The telecom giant attributed its increased profitability to growth in data services and digital solutions as well as contributions from subsidiaries.

Stc's results are seen as a key indicator of performance within Saudi Arabia's telecommunications sector.

The board of directors approved a cash dividend distribution of SR2.7 billion for the first quarter of 2026.

Stc Group CEO, Olayan M.

Al-Wetaid, emphasized that the company's financial results reflect the strength of its business model and strategic investments in growth opportunities and infrastructure development.

He highlighted the Silklink project in Syria, a partnership with the Syrian Sovereign Fund involving an investment of SR3 billion, as a significant step towards building a cross-border digital ecosystem.

The project includes constructing a 4,500 km fiber-optic network along with data centers and submarine cable landing stations.

Net cash from operating activities saw a nearly 1.5 times increase, while free cash flow rose to SR3.9 billion, more than quadrupling compared to the same period in 2025.

Stc's banking subsidiary also reported a 24 percent year-on-year revenue growth of SR397 million for the first quarter.

This financial performance underscores Stc's operational resilience and strategic expansion efforts within the competitive telecommunications market.