The three Saudi telecom companies listed on the financial market recorded total revenues of approximately $22.2 billion, equivalent to 83.42 billion riyals, during the first nine months of 2026. This figure represents a growth of 3.7 percent compared to the same period last year, which recorded about $21.46 billion, driven by increased demand for customer services, the business sector, carriers and operators, and the expansion of activities.
Revenue Distribution and Company Performance
Saudi Telecom Company (stc) alone accounted for about 72 percent of the total revenues of the three companies during the mentioned period, recording $16 billion (60.1 billion riyals) with an annual growth of 3.75 percent. In the same context, Etihad Etisalat Company (Mobily) revenues increased by 5.07 percent to reach $4.05 billion, while Mobile Telecommunications Company Saudi Arabia (Zain KSA) revenues grew by a slight 0.57 percent, recording $2.17 billion.
Profit Decline and Financing Pressures
Despite revenue growth, financial results showed a decline in the consolidated net profits of the three companies by 2.07 percent to reach about $3.78 billion (14.17 billion riyals), a decrease of 300 million riyals from the comparative period of the previous year. Experts attributed this discrepancy to several key factors, including higher financing costs associated with heavy capital expenditure on infrastructure development and 5G networks, in addition to increased operating expenses resulting from the shift toward providing advanced digital solutions such as cloud computing, data centers, and cybersecurity, as well as the impact of some non-recurring items.
What Does This Development Represent for the Sector?
This performance reflects a gradual shift in the business models of telecom companies in the Kingdom from a focus on traditional telecommunications services to expansion into the data economy and advanced technical services aimed at the business and enterprise sector. With continued high capital expenditure associated with digital transformation, the most prominent challenge facing companies remains enhancing operational efficiency and converting technical investments into sustainable cash returns that maintain profit margins in the long term.