This article first appeared on GuruFocus .
Release Date: January 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Kuwait Telecommunications Co KSC ( KUW:STC ) reported a 2% revenue growth, reaching KWD 324 million, indicating strong performance in service and product quality.
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The company achieved a 10% growth in EBITDA, reaching 93.5%, showcasing effective strategic execution.
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Net profit increased by 9% to KWD 34 million, despite the impact of new taxation laws.
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Investment in network infrastructure led to a 15% increase in cubex revenue, enhancing customer experience and coverage.
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Return on equity improved to 14.2%, reflecting efficient management and shareholder value enhancement.
Negative Points
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The new tax law impacted reported profits, requiring provisions to be made.
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There is a downward trend in ACL, although it was mitigated by improved sales quality and collections.
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CapEx investments were significant in 2025, which may not be sustainable in the long term without impacting financial flexibility.
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The company faces uncertainties in maintaining the same payout ratio, as it will be revisited annually based on economic changes.
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Future investments in data centers are uncertain and depend on various factors, potentially affecting strategic execution.
Q & A Highlights
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Warning! GuruFocus has detected 9 Warning Sign with KUW:STC.
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Q: Is there any guidance on revenue and growth in net profits in 2026? A: We remain focused on delivering sustainable growth, similar to what was achieved in 2025, and we are optimistic about maintaining this momentum in the upcoming years.
Q: Is the impact of the new tax law reflected in the reported profits? A: Yes, we have taken the provision as per the law.
Q: Can you comment on the downward trend in ACL? A: We closed lower than last year, mainly driven by quality sales and better collection efforts, which are the major factors in our ACL model.
Q: Can you provide insights on the key drivers behind the performance during 2025? A: Our strategy focused on quality, growth, and margin improvement. We enhanced revenue streams and managed OpEx efficiently, resulting in an EBITDA margin increase to 27%.
Q: Is there any plan to invest in data centers? A: Data centers are core to our systems and commercial engagements. It is part of our strategy, and we are assessing the feasibility as we go.
Q: Do you expect to sustain the same payout ratio, and what is your guidance for earnings for the next quarter? A: We review our dividend exercise annually to ensure shareholder returns, considering business plans and economic changes. We are optimistic about maintaining momentum in Q1.
Q: What is your CapEx guidance for 2026? A: Major investments were made in 2025, and we expect a reduction in CapEx unless new areas in Kuwait require coverage to enhance customer experience.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
