en-annual-report-2025

2025

annual report

Connecting bridges to

a digital tomorrow

Amir of the State of Kuwait

H.H. Sheikh Mishal Al-Ahmad

Al-Jaber Al-Sabah

The Crown Prince

H.H. Sheikh Sabah Khaled

Al-Hamad Al-Sabah

Theme of the year

In today’s rapidly evolving world, connectivity has become the cornerstone of digital

transformation. As technology continues to blur the boundaries between physical and

virtual spaces, redefining connectivity means more than just improving communication

networks; it’s about building bridges that enable digitization across every aspect

of life and linking the present to the future through the power of digital integration.

These bridges connect people, businesses, and systems, allowing information to flow

seamlessly and innovation to thrive.

stc is not only

connecting networks

Evolving from a leading telecommunications

provider into a multi-sector digital catalyst, stc

is bridging industries, communities, and future

opportunities through integrated platforms, high-

speed networks, and intelligent technologies. As a

digital enabler with stronger digital connections,

stc aims to enhance efficiency and accessibility,

as well as creating new opportunities for

collaboration, inclusion, and sustainable growth.

As the digital ecosystems expand, so does

stc’s digital vision. Through next-generation

connectivity, cloud solutions, IoT deployment,

cybersecurity services, and smart infrastructure

investments, stc is not only powering

communication but enabling new value chains

across government, enterprise, and everyday life.

Driven by the r.e.a.c.h. strategy, these advancements

are demonstrated by long-term partnerships, a

flexible business model, and continued expansion

into high-growth verticals such as AI-powered

applications, digital payments, and data-driven

platforms.

Throughout 2025, stc strengthened its role as

Kuwait’s digital bridge-builder, facilitating

connectivity within sectors such as energy,

healthcare, education, and transportation, while

empowering SMEs with scalable digital capabilities.

Annual Report 2025

Theme of the year

stc Kuwait | Annual Report

it is connecting

possibilities

With the launch of the company’s innovative

consumer and enterprise platforms, stc played a

pivotal role in supporting Kuwait’s advancement

toward becoming one of the region’s leading digital

economies, reinforcing its position as a key driver

of national digital transformation.

stc also reinforced its contribution to national

priorities by integrating sustainability, governance,

and talent development within its innovation

agenda. From local cloud hosting to public-private

partnerships, stc continued to expand digital

accessibility and nurture a future-ready workforce,

supporting Kuwait’s transition toward a knowledge-

based, tech-driven economy.

As Kuwait enters a new phase of digital

acceleration, Connected Horizons reflects

stc’s commitment to shaping a borderless,

interconnected future, a future where technology is

not just a tool for communication but a foundation

for opportunity, creativity, and economic resilience.

Connecting

bridges to

a digital tomorrow

Table of

contents

01

02

Overview

About stc

FY 2025 Highlights

12

Year in Review

14

Our Journey

18

Shareholder Information

20

Investment Case

22

Strategic

Review

Chairman’s Statement

28

CEO’s Message

32

Our Business Model

36

Strategic Framework and

Corporate KPIs

38

CFO’s Review

42

Engaging our

Valued Stakeholders

46

Risk Management

48

03

Business Review

Consumer Segment

62

Enterprise Segment

66

Technology Sector

70

Annual Report 2025

Theme of the year

stc Kuwait | Annual Report

04

05

Website

LinkedIn

Youtube

Contact us

Sustainability

Review

Our Sustainability

Vision for 2025

76

Our Strategic ESG Priorities

78

stc Kuwait Sustainability

Achievements – 2025

82

Governance

Report

Corporate

Governance Report

86

Shariah Supervisory

Board Report

128

Audit Committee Report

130

06

Financial

Statements

Financial Statements

Integrity for the Board

of Directors Declaration

136

Independent auditor’s report

to the shareholders of Kuwait

Telecommunications

Company K.S.C.P.

138

Consolidated Statement

of Financial Position

142

Consolidated Statement

of Profit or Loss

144

Consolidated Statement

of Profit or Loss and Other

Comprehensive Income

145

Consolidated Statement

of Changes in Equity

146

Consolidated Statement

of Cash Flows

147

Notes to the Consolidated

Financial Statements

149

Overview

A strategic overview of stc’s performance,

achievements, and commitment to

sustainable value creation.

About stc

FY 2025 Highlights

12

Year in Review

14

Our Journey

18

Shareholder Information

20

Investment Case

22

Annual Report 2025

stc Kuwait | Annual Report

Overview

About stc

Kuwait’s most trusted and innovative

telecom operator for over 17 years,

stc is dedicated to advancing Kuwait

Vision 2035 by powering the nation’s

digital transformation and positioning

the country as a leading financial and

commercial hub in the region.

Over the past decade, we have

solidified our position as the fastest

growing and most advanced telecom

operator in Kuwait. In support

of building the largest 5G network

in the country and being the first

in the region to launch 5G Standalone

Technology, stc launched the ”5G

Advanced” network to enable

more precise connectivity, higher

speeds, and more intelligent network

capabilities that align directly with

the objectives defined under Kuwait

Vision 2035.

Across our 64 branches and digital

platforms, we offer a comprehensive

portfolio of products and services

tailored to meet the diverse needs

of both individual and enterprise

customers. From telecommunications

and entertainment to information,

digital solutions and data transfer

services, we are committed

to delivering exceptional experiences

and outstanding support to our

+2.3 million customers – wherever they

are, whenever they need it.

373

employees

61%

of employees are Kuwaiti

nationals

17

years in operations

100%

coverage of residential

and populated areas

Annual Report 2025

stc Kuwait | Annual Report

Overview

stc Kuwait | Annual Report

Computer Data Networks

Our brand

Our subsidiaries

solutions by stc

stc completed the acquisition of the entire capital of

Qualitynet (solutions by stc) on 6 May 2019. The company

specializes in providing integrated business solutions,

internet services, and fixed broadband services. This

process was one of the crucial steps in our journey to

improving the business solutions that stc offers to its

customers. This milestone combined the strengths of two

established and well-positioned telecom companies with

prestigious and strong positions in the telecom and ICT

sector, as well as paving the way for both individual and

enterprise customers to achieve their desired goals.

e-Portal Holding Company

and its subsidiaries

On 6 April 2022, stc has completed the acquisition of

the entire share capital of e-Portal Holding Company

and its subsidiaries, specializing in communications

and ICT in Kuwait, one of the most prominent companies

in this field. e-Portal represents stc’s dedicated digital

transformation arm for the B2B sector, providing

Information and Communication Technology (ICT),

Internet of Things (IoT), as well as cloud services, and

serving as a leading Oracle solutions provider in the

State of Kuwait through its subsidiaries, Al Dar Systems

and J.M.T. Al Ghanim & Sons Co., delivering end-to-end

enterprise technology solutions across the public and

private sectors.

In addition, JMT serves as Oracle’s official distributor

in Kuwait, bringing over two decades of Oracle delivery

excellence across Business Intelligence, Database,

Financials, Supply Chain, Human Capital Management,

and enterprise integration technologies.

Kuwait Telecommunications Company (stc) has a brand

name which considered the most valuable brands

in the Middle East in the telecom sector. It is a unified

trading brand of the group’s companies in KSA, Kuwait,

and Bahrain. The Group’s brand name was ranked 3rd

strongest telco brand in the world by Brand Finance.

stc’s strong brand name is one of the key factors that

enhanced the company’s position in telecom market

in the region and the gateway through which stc seeks

to keep abreast of the latest technical and digital

developments in the ICT sector.

Vision, Mission,

Values, and Purpose

Dynamism

Outstanding

energy to enhance

and enrich our

performance.

We are agile,

collaborative and

fresh.

Drive

Moving forward and

enabling the best

possible solutions

for our clients

and employees.

We are proactive,

inventive and

inquisitive.

Devotion

Determined

to be a ”customer

centric” company

for our clients and

an inspirational

workplace for our

employees. We

are caring, committed

and trustworthy.

Mission

Enable Kuwait’s digital

transformation by empowering

customers and supporting

government initiatives through

innovative and tailored solutions,

while driving growth and

shareholder returns.

Vision

Digital leader, enriching lives and

empowering businesses.

Values

Annual Report 2025

stc Kuwait | Annual Report

10

Overview

stc creates products and services beyond the

traditional telecommunications services to

enable the digital pillars of the new digital

economy. At stc, we combine smart technologies

with the most advanced systems to harness

the digital capabilities and the full power of

technologies to better serve our customers,

stakeholders, government entities, and the

local community. We develop digital platforms,

solutions, and services based on data science,

cloud computing, artificial intelligence,

and advanced digital analytics driven by 5G

services. By empowering the leading industries,

businesses, and governmental entities to thrive

through providing the most innovative digital

services, stc focuses on shaping a sustainable

future to for the local community with deeper

insight and accelerated growth.

stc aspires to a new digital

age transforming our

nations and economies.

Purpose

11

FY 2025 Highlights

Key financial indicators

Revenues (KD million)

342.5

(2024: 336.5)

+1.8%

EBITDA (KD million)

93.5

(2024: 85.3)

+9.6 %

Net Profit (KD million)

34.1

(2024: 31.4)

+8.7 %

EBITDA Margin (%)

27.3

(2024: 25.3)

+1.9 pt.

Earnings Per Share (Fils)

34

(2024: 31)

+8.7 %

Dividends per share* (Fils)

38

(2024: 35)

+8.6 %

Results are compared to the same period last year.

*Cash Dividends distribution for the year 2025 is subject to the approval of the Ordinary General Assembly.

Annual Report 2025

stc Kuwait | Annual Report

12

Overview

ESG highlights

Diesel generator sites

were cut by 31%

Employee Well-Being

Index reached 88.8%,

marking a +13.0 pt. year-

on-year improvement

Advanced workplace

inclusion through

autism awareness

initiatives

Established the

Sustainability

Steering Committee

(SSC), chaired by the

CEO and comprising

senior executives

Operational highlights

2.3

million

subscribers

34.1%

market

share

21%

female

employees

2.9 K+

towers

64

branches

5G

Advanced

launch

completed

13

2025 represented a significant chapter in stc’s ongoing

journey of growth and innovation. Amidst a rapidly evolving

digital landscape, the company continued to build on its

strong foundation by enhancing network capabilities,

expanding its portfolio of digital services, and strengthening

its position as a trusted enabler of Kuwait’s digital economy.

Guided by its strategic vision and commitment to innovation,

stc advanced its digital transformation journey, delivering

enhanced value to customers, partners, and the wider

community.

stc was the first to earn

the ISO 37301:2021 certification

for Compliance Management

Systems in Kuwait

stc awarded ISO 37301:2021

certification for Compliance

Management Systems, which is earned

as a first in Kuwait. Maintaining

this certification demonstrates

the Company’s commitment to strong

governance, ethical conduct, and

regulatory compliance.

stc signed a strategic partnership

with Nile Secure Networks

stc reinforced its leading position

in the digital transformation and

infrastructure modernization

through its partnership with an

AI-driven networking company. This

collaboration reduces total cost of

ownership for enterprise clients while

improving performance, network

automation, and security at scale.

The Launch of the 3rd

intake of the ”InspireU”

program

stc launched the 3rd

intake of ”InspireU”,

an entrepreneurial

state-of-the-art

accelerator designed

to support startups and

SMEs in Kuwait.

solutions by stc has enhanced

digital billing and invoice access on

My Business platform, promoting

sustainability through streamlined

processes. Businesses can now directly

download rental reports, all subscriber

bills, and monthly detailed invoices in

a single click, eliminating the need for

paper-based requests and reducing

reliance on email communication with

our billing team. This digital approach

minimizes environmental impact while

providing immediate and easy access to

essential billing information.

solutions by stc has enhanced ”My Business” platform to facilitate

Digital Billing and Invoice Access

stc participates in the fourth

edition of the ”LEAP 2025” tech

conference in Riyadh

stc participated in the ”LEAP 2025”

conference hosted in Riyadh, KSA.

The Company’s attendance at one

of the largest global technology

events aligns with stc’s strategic

objectives behind enabling digital

transformation, forming strategic

partnerships, and gaining access

to the latest insights and trends

in the market.

stc earned the ISO 45001:2018

certification for Occupational

Health and Safety Management

stc earned the ISO 45001:2018

certification demonstrating

its commitment to fostering

a safe and healthy working

environment for its stakeholders.

The certification provides

an internationally recognized

framework for identifying and

managing occupational health

and safety risks, strengthening

stc’s efforts to minimize workplace

hazards and enhance employee

well-being.

January

April

February

stc Kuwait | Annual Report

Year in

Review

Annual Report 2025

14

Overview

Focused on operational excellence and customer

satisfaction, stc pursued strategic initiatives that not only

improved business performance but also advanced the

nation’s broader technological progress. Through continuous

investment in infrastructure, emerging technologies,

and human capital, stc demonstrated its commitment to

sustainable development and long-term value creation.

The year’s accomplishments underscore the company’s

vision of leading the next phase of connectivity and digital

transformation across Kuwait and the region.

stc a Diamond Sponsor of the ”Kuwait

Sustainable Energy Week’

stc participated as a Diamond Sponsor

in the Kuwait Sustainable Energy

Week conference and exhibition

organized by the Ministry of Electricity,

Water, and Renewable Energy

in collaboration with the Regional

Center for Renewable Energy and

Energy Efficiency.

solutions by stc launched centralized

knowledge base on its website

solutions by stc launched a

comprehensive Help Center on

its website, enhancing customer

experience through self-service

digital tools. The platform provides

quick access to information and

support while reducing reliance on

traditional channels and minimizing

environmental impact.

Launches 5G Advanced network

stc launches 5G Advanced network

to deliver an exceptional experience

to its customers. The step comes

in line with stc’s ongoing commitment

to support Kuwait Vision 2035, which

aims to enable digital transformation

and provide an enhanced digital

experience for customers.

Establishing the AI Office

A dedicated AI Office was established

to oversee stc’s enterprise-wide AI

program. Anchored by a robust AI

strategy, the implementation of AI is

expected to create new opportunities

and capabilities across the

organization.

solutions by stc concludes 10×10G

IRU deal with Center3 to strengthen

international capacity

solutions by stc’s wholesale division

signed a 10×10G IRU agreement with

Center3 for stc Kuwait’s IP-Transit

services, reinforcing international

connectivity and supporting sustainable

growth in the wholesale segment.

Long-Term Incentive Program

for employees

stc announced the launch of its Long-

Term Incentive (LTI) Program, aimed at

rewarding top talent as they progress

within the Company. The LTI Program

aligns with stc corporate culture which

focuses on rewarding exceptional

employees for driving business

success, further motivating them to

achieve new milestones.

Launch of AI Unit

stc Launched a dedicated Artificial

Intelligence (AI) Unit under

the Transformation and Synergies

Sector to drive AI adoption, enhance

decision-making, and develop smarter

solutions for customers and employees.

May

June

July

15

stc signs a joint cooperation protocol

with Kuwait Airways to enhance digital

services

stc signed a joint cooperation

protocol agreement with Kuwait

Airways, the national carrier of Kuwait.

The protocol aims to strengthen

the strategic cooperation between

the two parties in the fields

of telecommunications and aviation,

providing integrated and innovative

services that support shared objectives

and enhance the overall customer

experience.

solutions by stc finalizes 2Africa

CLS Agreement to expand global

connectivity

The wholesale division finalized the

landmark 2Africa CLS Agreement, with

service orders processed and technical

implementation underway, marking a

major step in expanding international

capacity and regional connectivity.

Signing of a Strategic Contract with Kuwait University

stc signed a strategic contract with Kuwait University

to develop management, monitoring, and transportation

systems at the new Sabah Al-Salem University City campus.

The aim is to support digital transformation and enhance

the experience of students and faculty members through

integrated smart systems that combine modern technology

with advanced management.

solutions by stc launched My Business’s app version

solutions by stc launched My Business’s app version for

subscribers, a new self-service platform integrated within

mystc KW app. The app enables users to easily access and

manage their subscriptions, usage, and bills, with real-time

notifications for better service control.

stc headquarter relocation

stc relocated its headquarters to a new facility designed to

enhance the work environment, offering improved amenities

and workplace flexibility that support employee well-being,

trust, engagement and productivity. The new headquarters

provides a more inclusive and supportive setting, reinforcing

stc’s commitment to creating a positive employee experience

and enabling a modern, flexible, and high-performing

workplace. This move reflects stc’s continued investment in its

people as a key driver of sustainable performance, operational

performance, and long-term value creation.

September

Partners with Mobile Arts to enable Blacknut cloud

gaming service to its customers in Kuwait

stc announced its strategic partnership with Blacknut, a leading

global provider of cloud gaming solutions. The collaboration aims

to introduce a new cloud-based gaming service for stc customers,

expanding the Company’s portfolio of value-added services (VAS),

especially withen stc’s selection of entertainment solutions.

October

August

Year in

Review

▪ Global Most Valuable Partner Award by

HONOR

▪ Excellence in Quality FWA User

Experience by SAMENA

▪ Ranked 3rd for Best IR Film in Middle

East by Middle East Investor

Relations Association

Awards

Overview

Annual Report 2025

16

Overview

stc Kuwait | Annual Report

The enhancement of the qitaf

loyalty program

stc expanded the qitaf ecosystem

through a growing network of

partners across retail, lifestyle, dining,

entertainment, and digital services,

making qitaf Kuwait’s most valuable and

rewarding loyalty program. Besides fully

upgrading the digital experience, these

enhancements strengthened customer

loyalty, convenience, and everyday

engagement.

Enables stc’s AI Momentum

stc’s AI Week brought employees together to experience,

co-create, and shape how AI will be embedded into

operations and value creation. The program featured expert

keynotes, co-creation workshops, and hands-on labs.

Beyond participation, AI Week strengthened organizational

capabilities, validated real AI use cases, and marked the start of

stc’s sustained AI momentum.

stc is the main sponsor in the Nexus 2025

Kuwait’s Tech & Innovation Summit

Reinforcing its commitment to advancing Kuwait’s digital

ecosystem, stc participated as the main sponsor in the Nexus

2025 Kuwait’s Tech & Innovation Summit. The participation

enabled engagement with startups and industry leaders

through workshops, panel discussions, and technology

showcases, alongside the signing of strategic MoUs to

strengthen digital partnerships. This participation aligned

with stc’s CSR strategy and Kuwait Vision 2035, supporting

innovation, entrepreneurship, and digital transformation.

December

▪ Best Digital Workplace & Employee Experience

– Kuwait 2025 by International Finance

▪ Best Digital Transformation Company - Kuwait

2025 by International Finance

▪ Best Corporate Governance Telecom Company

– Kuwait 2025 by Global Business Outlook

Signed a strategic agreement

with National Technology

Enterprises Company (NTEC)

stc sustained its leading position in

digital transformation through the

strategic agreement with NTEC which

aims at enabling future co-execution

of large government programs

while maintaining legal/financial

independence for both parties.

November

17

Our Journey

2008

Launched commercially

First to abolish incoming calls fees

Became first operator in the world

to have all IP network

2009

Introduced high-speed mobile

broadband in Kuwait

Launched innovative prepaid offerings

and acquired 500K customers in one

year

2010

Expanded retail network and launched

joint promotions with retailers

Won Comms MEA ”Best Telecom Finance

Deal” Award

2011

Became first to introduce Apple iPhone

Launched strategic partnership with

Manchester United

Became first to introduce newest HSPA+

(42.2 Mbps) broadband network

2012

Launched Elite Program for loyal, VIP and

high-value customers

Became profitable during the fourth year

of operations

Began deployment of 4G LTE network

2013

Won ”Best LTE Deployment”

at the ”Telecoms World Awards – Middle

East”

Introduced number portability and

acquired majority of ported numbers

between operators

2014

Launched partnership with Real Madrid

Listed on Kuwait Stock Exchange

Ranked second in terms of revenue and

subscriber market share

2015

Became first to introduce the all-new VoLTE

technology

Expanded network to 70 branches across

Kuwait

Became first to introduce LTE Advanced

Annual Report 2025

stc Kuwait | Annual Report

18

Overview

2016

Won ”Best Telecom Company” by Arabian

Business

Became Member of the International

Telecommunication Union (ITU)

2017

Won ”2017 Speedtest Award” by Ookla

Won ”Best Operator Network” from

Telecom World Middle East

2018

Won ”Best Network Development Award”

at 5G MENA

2020

Ranked first in the MENA region

on the Forbes ”Global 2000” list

Rebranded Qualitynet to solutions

by stc

Established Connect Arabia W.L.L with

Mobility Telecom Kuwait Limited (BVI)/

the main partner

2025

stc Kuwait has been recognized as the Global

Most Valuable Partner for HONOR

stc launches 5G Advanced network to deliver

an exceptional experience to its customers

stc announced the launch of its Long-Term

Incentive Program for employees (LTI)

stc signed a joint cooperation protocol with

Kuwait Airways to enhance digital services.

2024

Upgraded from the Main Market

to the Premier Market on Boursa Kuwait

Signed land agreement to build stc’s new

headquarters

2023

Launched partnership with Samsung

to expand availability of smart solutions

Singed MoU with Huawei on 5.5G

strategic cooperation and digitalization

innovation

Added to a number of the MSCI and FTSE

Global Equity Indexes

2022

Acquired e-Portal Holding Company and

its subsidiaries, the leading ICT services

provider in Kuwait

Increased share capital to KD 99.9 million

through the distribution of 100% bonus

shares

2021

Led consortium with Virgin Mobile

Middle East & Africa that received

a MVNO license from CITRA

2019

Launched new stc brand

Acquired Qualitynet, the leading ISP

provider in Kuwait

Launched 5G services

Signed MoU with Huawei to develop

5G services

stc has rapidly established itself as a leading force in Kuwait’s telecom and ICT sectors,

continuously innovating and raising the bar with industry firsts, strategic partnerships,

and cutting-edge advancements. Through strategic growth and diversification,

stc now plays a pivotal role in empowering Kuwait’s digital future and advancing

the nation’s Vision 2035.

19