Saudi Telecom Company (stc Group) has announced that it won a contract worth SAR 32.64 billion (USD 8.70 billion) from a government entity to build, operate, and provide telecommunications infrastructure services.
The contract spans a duration of 18 months solely dedicated to preparation and execution, followed by 15 years of project operations, stc said in a regulatory filing.
[stc did not disclose the identity of the government entity.]
"The financial impact will be positive and the revenue will be recognized in stc's consolidated financial statements after the initial operation of the project, which is expected to be in the fourth quarter of 2026 until the end of the contract period," stc said in the filing.
[stc did not mention any related parties for the project at the time of publication.]
Read More: stc Group: Shaping a Connected Future Across Saudi Arabia and Beyond
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Separately, in a recent development related to its international investment portfolio, stc Group has received formal approval from the Spanish Council of Ministers to increase its voting rights in Telefónica. With this approval, stc's stake in the telecommunications giant will rise to 9.97%, and the company will gain the right to appoint a representative to Telefónica's Board of Directors.
Additionally, to bolster its 5G coverage, stc Group and Huawei have embarked on the commercial launch of SuperLink, a digital solution connecting remote regions with high-speed 5G network connectivity. The launch aligns with stc Group’s mission to drive high-speed and reliable network connectivity across Saudi Arabia.
stc Group announced its financial results for the third quarter of 2024, achieving both its highest nine-month revenues and revenues to date. The company’s revenue increased by 3.92% YoY, reaching SAR 56.627 billion while net profit for the period reached SAR 11.233 billion, reflecting an increase of 11.9%. Additionally, stc subsidiaries’ revenue grew by 11%, contributing to the Group's record-breaking performance that exceeded market analysts’ estimates.
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