Saudi Telecom Revenues Near $21 Billion in 2025

26/11/2025 03:41 AST

Saudi Arabia's listed telecommunications companies posted strong financial results over the first nine months of 2025, supported by accelerated digital transformation, expanded infrastructure services, and rising demand for new technologies. The sector's performance reflected sustained growth and resilience, with companies boosting overall profit levels and strengthening operational efficiency.

According to financial disclosures, the combined net profit of Saudi-listed telecom operators grew 5.72% in the first nine months of 2025, reaching SAR 14.46 billion ($3.86 billion), compared with SAR 13.68 billion ($3.65 billion) in the same period last year. Sector revenues hit SAR 80.46 billion ($21.45 billion) over the period.

Analysts attribute the strong performance to rising revenues, reduced operating costs, and continued expansion in data and digital services. Demand for 5G, cloud computing, and Internet of Things (IoT) solutions has grown significantly in the Kingdom.

Industry research group Mordor Intelligence estimates the Saudi mobile communications market at $26.97 billion (SAR 101.14 billion) in 2025, with expectations to reach $37.19 billion (SAR 139.46 billion) by 2030, a compound annual growth rate of 6.64%.

Four telecom operators are listed on the Saudi exchange (Tadawul): Saudi Telecom Company (stc), Mobily (Etihad Etisalat), Zain KSA (Mobile Telecommunications Company Saudi Arabia), and GO (Etihad Atheeb Telecom), whose fiscal year ends in March rather than December.

stc dominated the sector's results, contributing around 80% of total profits. The company posted net earnings of SAR 11.58 billion in the first nine months, an annual increase of 3.08%.

Mobily delivered the highest profit growth in the sector. Its net earnings rose 18.15% to SAR 2.51 billion, driven by higher revenues and improved cost efficiency.

Zain KSA ranked second in profit growth at 15.84%, reporting earnings of SAR 373 million, helped by lower operating expenses and improved credit provisions.

Speaking to Asharq Al-Awsat, Mohamed Hamdy Omar, CEO of G.World, noted that the sector's third-quarter performance was "mixed," despite a combined profit of SAR 5.17 billion for the three major companies.

He said the downturn compared with last year's third quarter was mainly due to an 11.54% quarterly profit decline at stc, whose results heavily influence the market.

Mobily posted robust quarterly growth of 10.5%, while Zain KSA saw a modest 2% increase, supported by lower operating costs and improved provisioning. Overall sector revenues rose 4.6% year-on-year to SAR 26.86 billion, driven by expanding demand for digital and infrastructure services.

Market experts expect continued telecom growth, supported by expanding 5G usage, cloud and data center services, government digital programs under Vision 2030, and rising corporate demand for cybersecurity, AI, and cloud solutions.

Omar stressed the need for telecom operators to diversify portfolios into financial, entertainment, and technology sectors to reinforce competitiveness.

Financial analyst Nasser Alrasheed told Asharq Al-Awsat that telecom profits reflect strong digital investment, innovation, and expanding data consumption. He expects continued earnings growth as operators enhance network quality, cut financing costs, and invest in big data and artificial intelligence services.