stc Share Trading: Comprehensive Analysis and Financial Performance in the

Saudi Telecom Company (STC) was established in the late 1990s as part of the telecom sector privatization program, evolving to become the largest telecom company in Saudi Arabia. The company is listed on the Saudi Stock Exchange (Tadawul) under the symbol 7010 and is a cornerstone of the main market index. STC holds a market share exceeding 50% in the mobile communications sector, distinguished by its extensive network covering all regions of the Kingdom and its ambitious projects in broadband and 5G. The largest shareholder is the Saudi government, represented by the Public Investment Fund, reflecting official confidence and commitment to the company’s sustainable growth. STC plays a pivotal role in supporting Saudi Vision 2030, especially through digital transformation and smart city projects. The company has expanded internationally with strategic investments in regional and global telecom companies, reinforcing its status as one of the largest operators in the Middle East and North Africa.

During 2024 and 2025, the STC share demonstrated stable performance with minor fluctuations around elevated levels. At the end of 2023, the share traded near the SAR 100 mark, maintaining movement mostly above this level throughout 2024. By early 2025, the share price ranged between SAR 110 and 115, reflecting investor confidence in the company’s sustained profitability and adaptability to sectoral shifts. The company’s issued shares are estimated at approximately 2.75 billion, giving STC a market capitalization exceeding SAR 300 billion, placing it among the top five listed companies on Tadawul. This stability is attributed to a strong financial position, clear expansion strategy, strict corporate governance, and a consistent dividend policy that enhances the share’s appeal for investors seeking stable returns.

STC’s share is supported by several financial indicators reflecting its market strength. Key metrics include:

- Price-to-Earnings Ratio (P/E): Ranged between 20 and 25 during 2023-2024, indicating a reasonable valuation relative to the company’s robust and stable profitability.
- Dividend Yield: Averaged between 4% and 5% annually based on current prices, due to a consistent distribution policy.
- Revenues and Profits: STC achieved annual profits exceeding SAR 12-13 billion in 2023, with moderate revenue growth in H1 2024 driven by 5G expansion and increased internet subscriptions.
- Dividends: Distributions for 2024 exceeded SAR 5 billion (SAR 1.82 per share), with regular payouts continuing into 2025 despite some changes linked to exceptional returns.

These indicators reflect a balance between growth and value distribution to shareholders, supporting STC’s status as a leading share in the Saudi market.

STC is committed to a relatively stable dividend policy, reinforcing investor confidence in future cash flows. In 2024, the company approved total distributions of SAR 1.82 per share (about SAR 5 billion), paid in two semi-annual installments. In H2 2025, the company paid SAR 2.744 billion (EUR 627 million), or about SAR 0.60 per share. Despite a reduction in 2026 dividends due to the absence of exceptional returns, management reaffirmed its commitment to regular distributions. STC’s dividend policy balances funding for strategic expansion with meeting shareholder expectations. The company remains among the highest dividend payers in the regional telecom sector, reflected in a higher dividend yield compared to market averages.

STC’s strength is rooted in its diversified revenue streams, with main income from mobile and fixed-line services, internet subscriptions, and enterprise telecom solutions. The company recently expanded into digital payments via the Levy platform (formerly STC Pay), adding a new revenue source from financial service fees. Additionally, STC benefits from its international investments, such as its 9.96% stake in Spain’s Telefónica, providing extra international returns. Through its subsidiaries, STC also offers cloud computing and cybersecurity solutions, serving as a key technology partner in Saudi Arabia’s digital transformation projects. This diversification ensures sustainable cash flows and reduces risks associated with traditional telecom market fluctuations.

STC is among the first companies in the region to invest in 5G technologies, launching services in several Saudi cities since 2019. This has boosted its subscriber base and increased average revenue per user. The company has also made significant inroads into smart city projects (such as "The Line" and NEOM) and developed advanced digital infrastructure. In fixed internet, STC expanded fiber optic coverage, enhancing internet quality nationwide. The company is currently adopting IoT projects and integrated digital solutions for enterprises. It also invests in international technology partnerships, such as the "SilkLink" project connecting Asia and Europe via submarine cables, supporting Saudi Arabia’s position as a regional digital communications hub. These initiatives strengthen STC’s competitiveness and make it a strategic partner in national digital transformation.

The Saudi telecom sector is marked by strong competition among STC, Etihad Etisalat (Mobily), and Zain Saudi Arabia. STC controls over half of the mobile communications market, while Mobily and Zain share the remainder. Competition centers on network quality, internet speed, and comprehensive solutions for individuals and businesses. The Communications and Information Technology Commission supports competition through regulatory policies aimed at improving service and protecting consumers. In this environment, STC maintains its lead thanks to ongoing infrastructure investments, broad geographic coverage, and expansion into digital services. However, the company faces growing challenges, such as competitive pricing from rivals and continuous service innovation. This competition impacts profit margins but also drives STC to develop new products and services that support the share’s market position.

STC’s foreign investments are a core part of its strategy to diversify and enhance revenue sources. Notably, it holds about 9.96% of Spain’s Telefónica, one of Europe’s largest telecom operators. This stake reflects STC’s ambition for global expansion and leveraging growth opportunities beyond the local market. The company also owns stakes in telecom firms across the Gulf, Africa, and parts of Asia, along with investments in technology and financial solutions. These international expansions provide STC with cash flows in dollars and euros, reducing reliance on the Saudi market. They also reinforce its position as a regional and global telecom operator, opening new growth horizons, especially in emerging markets.

During 2024 and early 2025, STC witnessed several significant developments. Most notably, it announced major dividend distributions to shareholders totaling SAR 2.744 billion for H2 2025, equivalent to SAR 0.60 per share. The company also recommended reducing dividends in 2026 following the absence of exceptional income, while affirming its ongoing commitment to regular payouts. Internationally, STC strengthened its position by increasing its stake in Telefónica and entered strategic partnerships in regional submarine and terrestrial telecom projects, such as the "SilkLink" project between Saudi Arabia and Syria. On the technology front, the company continues to develop 5G networks and signed agreements to provide satellite internet solutions for smart city projects. These developments reflect the company’s dynamism and responsiveness to local and international changes.

STC plays a pivotal role in implementing Saudi Vision 2030, particularly in digital transformation, smart cities, and enhancing ICT infrastructure. The company participates in major projects like NEOM and The Line, serving as the primary telecom provider for key government sectors. This strategic role gives the STC share strong support in terms of revenue stability and diversified government contracts. As the government’s focus on digitization and e-services intensifies, demand for STC’s technology solutions grows, supporting the company’s medium- and long-term growth. Conversely, the share’s performance is partly tied to the execution of these projects and achievement of their objectives, meaning progress or delays in certain initiatives may impact share movement in the market.

Despite STC’s strong market position, several risks should be considered when evaluating the share. Key risks include:

- Increased local competition (entry of new operators or expansion of satellite internet services).
- Changes in legislation or regulatory policies that may affect service pricing or profit margins.
- Heavy reliance on government projects, making company performance dependent on their success.
- Macroeconomic fluctuations that could impact public and private spending on telecom services.
- Rapid technological shifts requiring substantial investments to keep pace with innovation (such as ongoing transitions to 5G and 6G).

STC manages these risks by diversifying revenues, boosting technology investments, and maintaining a leading market position.

Based on available data and market analysis, the STC share is expected to maintain relatively stable performance in the medium term. Continued government support, expansion in digital services, and the company’s international market orientation support sustainable revenue growth. The regular dividend policy also enhances the share’s appeal for investors seeking steady income. However, it is important to monitor the impact of competition, regulatory changes, and new technology projects on profit margins. Investors should also follow the company’s quarterly results and developments in major government projects such as NEOM and The Line. STC remains well positioned to benefit from Saudi Arabia’s digital transformation, but careful risk assessment is essential before making any investment decision.

To professionally track stc share trading, it is recommended to rely on official sources such as the Saudi Tadawul platform, which provides real-time price data, trading volumes, and official company announcements. Financial analysis tools can be used to compare key metrics (P/E, dividend yield, annual revenue growth) with telecom sector competitors like Mobily and Zain. Financial analysis platforms (such as SIGMIX) also help track share movements, analyze news and periodic reports, and monitor sector developments. It is also important to review STC’s quarterly and annual reports and follow news related to government projects and technological innovations. All this data helps build a realistic picture of the share and supports informed decision-making, with the necessity of consulting a licensed financial advisor before any investment.