The Group reported a 378.0% increase in net income to record SAR 250.5 million in 9M 2024, driven by solid revenue growth and expanded profit margins across all segments. SHAHID’s AVOD revenue more than doubled, alongside continued subscriber growth, as MBC Group invested in premium content and innovative digital experiences to drive viewership and strengthen its position in the MENA region. Broadcast & Other Commercial Activities (BOCA) also witnessed steady advertising demand and increased revenue, contributing to the Group’s strong performance overall.

Riyadh, KSA – 10 November 2024: MBC GROUP (“MBC” or the “Company” or the “Group” | Tadawul: 4072), the leading media and entertainment conglomerate in the Middle East and North Africa (MENA) region, announced its financial results today for the nine-month period (9M 2024) ending 30 September 2024. The Group delivered a strong financial and operational performance, with an 11.6% year-on-year (YoY) revenue increase to SAR 2.9 billion and a 378.0% YoY rise in net profit to SAR 250.5 million. 

Sam Barnett, MBC Group’s Chief Executive Officer, commented: “MBC Group’s nine-month results show revenues nearing SAR 3 billion and a nearly fivefold increase in net profit. These results underscore the strength of our strategy and the resilience of our business model. Our focus on premium Arabic content, digital innovation and diversification of our revenue streams has enabled us to capture value from both traditional and digital platforms. SHAHID’s growing reach and engagement post-Ramadan and sustained advertiser demand for our broadcast channels demonstrate our ability to meet audience needs while achieving strong commercial outcomes. Our strategic focus and market growth across our key segments keep the MBC Group well-positioned for the future.”

Consolidated Financial & Operational Highlights

Group revenue grew by 11.6% YoY in 9M 2024, reaching nearly SAR 3 billion.  This was driven by strong performance in Broadcasting & Other Commercial Activities (BOCA) and SHAHID, which delivered a YoY increase of 20.7% and 35.9% in revenue, respectively. However, Media & Entertainment Initiatives (M&E) revenues declined by 35.5% YoY in 9M 2024 due to cyclical project timelines and phased revenue recognition.

The Group’s gross profit in 9M 2024 reached SAR 891.4 million, marking a 43.1% YoY increase, and gross profit margins expanded to 30.1% from 23.5% in 9M 2023. This improvement reflects higher revenue contributions from SHAHID and BOCA, alongside disciplined cost management across all segments. 

Net profitability across the Group’s three business segments showed solid improvement in 9M 2024, led by SHAHID’s performance, which reduced losses by 73.9% YoY. This was accompanied by a significant 89.0% YoY increase in the M&E segment’s net profit. These factors collectively supported a substantial YoY net profit increase to SAR 250.5 million, underscoring the Group’s strategic focus on revenue growth and cost optimization. 

Moving to the Group’s quarterly performance, revenue reached SAR 757.1 million in 3Q 2024, illustrating resilience in MBC’s core business segments, despite seasonal cyclicality impacting some advertising sectors. SHAHID contributed SAR 248.3 million (up 25.9% YoY) while BOCA recorded SAR 430.4 million (a 21.6% YoY increase).

Content continued to expand in 3Q 2024 with a diverse slate of multi-genre series, including premium regional offerings such as "Al Ameel," a thriller-drama adapted from Turkish literature; "Omar Affendi," a popular comedy-drama in Egypt; and "Bait al Ankaboot," a Saudi social-drama. Additionally, SHAHID aired Season 4 of "RSL" and the Diriyah Saudi Super Cup in late August, attracting sports audiences.

SHAHID’s Advertising-Video on Demand (AVOD) active monthly users grew by 13.7% YoY, reaching 17.8 million by the end of 3Q 2024, while Subscription Video on Demand (SVOD) subscriptions rose 22.2% YoY to 4.8 million users. This growth across the ad-supported and subscription models illustrates SHAHID’s ability to attract diverse audience segments and drive monetization beyond peak seasons like Ramadan. 

Accordingly, MBC Group is updating its guidance for SHAHID, which, based on the Group’s current plans, is projected to reach breakeven by FY2027, a year ahead of the previous FY2028 target. This timeline reflects SHAHID’s robust growth across Subscription Video on Demand (SVOD) and Advertising Video on Demand (AVOD) revenue, supported by sustained operational efficiencies that have enabled SHAHID to maintain a steady cost base. Key drivers behind this revised outlook include higher-than-anticipated subscriber growth and a marked increase in AVOD performance relative to prior years.

Business Segment Performance

BROADCASTING & OTHER COMMERCIAL ACTIVITIES
The Group’s Broadcasting & Other Commercial Activities (excluding SHAHID) includes revenue generated from advertising on free-to-air (FTA) channels and other media-related activities, which include service agreements such as the one in place with the Saudi Sports Company (SSC). Commercial activities also include content revenue generated by third-party sales and generated by other business ventures such as gaming, events and music.

The BOCA segment recorded a 20.7% YoY increase in total revenue for 9M 2024, reaching nearly SAR 1.8 billion compared to SAR 1.5 billion in 9M 2023. Gross profit for the period rose 13.1% YoY to reach SAR 641.6 million while net profit reached SAR 298.3 million up from SAR 279.9 million, highlighting the Group’s strong market positioning in both traditional broadcasting and diversified commercial activities. 

The primary drivers of growth in the nine-month period were TV revenues, which increased 5.8% YoY, and Broadcast & Technical Services revenue, which doubled to record SAR 654.5 million in 9M 2024, up from SAR 317.8 million. Despite seasonality, advertising revenue increased by 2.8% compared to 9M 2023, with the number of advertisers growing by 27% to reach 711. 

In 3Q 2024, BOCA generated SAR 430.4 million in revenue, marking a 21.6% YoY increase. However, gross profit for the quarter declined by 11.1% YoY to SAR 131.4 million, and net profit decreased by 40.7% to SAR 44.3 million. This decline was primarily due to a temporary reduction in gross margins from broadcasting and technical services contracts, influenced by the timing of contract signings and expected variability in programming costs during the quarter.

SHAHID (OTT PLATFORM)
The Company operates a high-growth online video streaming service across SVOD (subscription video-on-demand) and AVOD (advertising video-on-demand) platforms. The revenue from this business segment is mainly driven by subscription fees paid by subscribers and digital advertising on AVOD.

SHAHID, MBC's OTT platform, recorded a 35.9% YoY increase in total revenue to SAR 805.7 million in 9M 2024, driven by growth in both subscriber and advertising revenue. In 3Q 2024, SHAHID achieved SAR 248.3 million in total revenue, reflecting a YoY increase of 25.9%, primarily supported by robust AVOD performance. Net losses for SHAHID decreased significantly by SAR 173.4 million in 9M 2024 compared to 9M 2023. 

SHAHID's subscriber base continued to expand, reaching 4.8 million SVOD subscribers in 3Q 2024, representing a 22.2% YoY increase YoY with nearly 1 million new users. This growth underscores SHAHID’s increasing year-round appeal, maintaining strong momentum even beyond the month of Ramadan. 

SHAHID's AVOD platform saw a 13.7% YoY rise in active monthly users, reaching 17.8 million at the end of September, reflecting strong demand for its ad-supported content. Consequently, advertising revenue more than doubled YoY as the Company continues to focus on expanding and enriching its content lineup on the free-to-watch, ad-supported platform.

In addition, the Group continues to invest in technological enhancements on the SHAHID platform to create a more personalized user experience, optimize content delivery, and support operational efficiency. AI integration efforts are underway to further personalize viewer experiences, enrich content, and broaden the platform’s reach with expanded subtitle options in additional languages. 

MEDIA & ENTERTAINMENT INITIATIVES (M&E)
The Group prioritizes its partnership with the Saudi government through media and entertainment initiatives, aligning with Vision 2030 objectives. These efforts aim to enhance the media landscape in Saudi Arabia and contribute to the broader national goals of development and progress. While distinct from its core commercial operations, these initiatives underscore the Group’s commitment to societal advancement and align with its overarching mission.

In 9M 2024, the Group continued to meet its agreed KPIs with the Saudi government for all ongoing M&E initiatives. Despite a revenue decrease from SAR 589.2 million in 9M 2023 to SAR 380.1 million in 9M 2024, primarily due to variations in project cycles, the segment maintained a stable gross profit of SAR 127.1 million in 9M 2024, reflecting a 0.8% increase YoY. In line with guidance, net profit reached SAR 13.4 million, marking a notable 89.0% YoY increase and resulting in a net profit margin of 3.5% for the period. This increase was driven by new projects that began incorporating management fees. 

MBC ACADEMY continued its commitment to nurturing and developing Saudi talent within the entertainment industry, training over 11,300 individuals, offering more than 4,500 virtual courses, and conducting over 6,400 auditions in 9M 2024.

MBC STUDIOS remains focused on high-quality content creation, with upcoming productions that include two fully funded football documentaries following Saudi Arabia’s Al Ahli Football Club and Spanish football club, Unión Deportiva Almería. The upcoming releases also include “Autumn in My Heart”, SHAHID’s first Saudi adaptation. 

In line with Vision 2030 and the government’s plan to revolutionize the media and entertainment ecosystem in KSA, 70 out of 84 projects are currently being produced or planned for production in KSA - a significant increase from 2023. The Group remains on track to raise this percentage further in the coming years.

Lastly, the MBC Narjis Studios site is continuing to progress well, with the first studio prepared to host ‘Arabs Got Talent’ in November. The second and third studios, adding an additional 7,000 sqm of studio space, are set for completion in 1Q 2025. Furthermore, the post-production facilities and the office space, designed to accommodate over 250 employees, are scheduled to open by the end of 1Q 2025.

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3Q 2024 Earnings Release

MBC GROUP’s “Top Chef” chooses Saudi Arabia’s NEOM for latest season production

Contestants set to take on challenges that will require innovative thinking and a sustainable approach, from using locally sourced ingredients to integrating energy-efficient cooking methods.


NEOM, Kingdom of Saudi Arabia | 1 July 2024: MBC GROUP, the largest and leading media organisation in the Middle East and North Africa (MENA), is joining forces with NEOM Media Industries, the premier global media hub, to launch the production of the much-anticipated eighth season of “Top Chef”.

Bringing a new creative direction to the acclaimed reality TV series in the region, the latest season of “Top Chef” marks a partnership that promises a fusion of competitive culinary arts with ultra-modern urban development.

Originally launched by Bravo in the United States, “Top Chef” centres around chefs competing against each other in various culinary challenges. The contestants are judged by a panel of professional chefs and other notable personalities from the food and beverage industry, with one or more contestants eliminated at the end of each episode.

In the region, the Arabic version by MBC GROUP has so far been filmed in locations across the United Arab Emirates, Lebanon, and Saudi Arabia. NEOM marks the latest exciting location for the programme in the Kingdom.

Samar Akrouk, MBC GROUP’s Director of Production and General Manager of MBC STUDIOS, commented: “NEOM offers a visionary setting for the culinary excellence demonstrated in ‘Top Chef’. Bringing the show to NEOM is not merely a change of location; it is a significant step in redefining the future of filming in the Kingdom. This eighth season will merge the high-energy competition that viewers expect with a strong emphasis on ecological awareness and sustainable living, reflecting the core values of NEOM as a city of the future.”

She continued: “The latest season’s contestants will be taking on challenges that require innovative thinking and a sustainable approach, echoing the principles upon which NEOM is built. These challenges have been designed to inspire contestants to think about food in its relation to the environment. For example, from using locally sourced ingredients to integrating energy-efficient cooking methods, each episode will contribute to a narrative of planetary stewardship.”

NEOM MEDIA VILLAGE

Production of the new season of “Top Chef” will take place in the NEOM Media Village, home to four world-class sound stages and resort-style lodgings for cast & crew, with every episode featuring rigorous challenges designed to push the chefs’ skills to the limit. In addition to the bootcamp-style concept, the programme will also feature special appearances by a series of international and regional guest judges, including those who run some of the world’s top Michelin-star restaurants. Their expertise and discerning palates will no doubt add an extra layer of excitement to each episode, elevating the competition to new heights.

Wayne Borg, Managing Director for Media Industries, NEOM, stated: “NEOM has cemented its position as the regional hub for non-scripted formats, attracting top global talent to create unmissable TV content. NEOM's unparalleled range of sound stages, backlots, offices, workshops, support services, and other facilities meet the evolving needs of large-scale formats.  We are delighted to reaffirm our ongoing partnership with MBC as we embark on the latest season of 'Top Chef.' This collaboration underscores our mutual commitment to advancing the local ecosystem, as we continue to support MBC with an ambitious slate of premium content.

In just two years, NEOM has facilitated over 40 productions encompassing Hollywood, Bollywood, Arabic, and Saudi feature films, alongside high-quality TV documentaries, non-scripted entertainment, scripted productions, and commercials.

The eighth season of “Top Chef” is currently in production, with the series launching on MBC GROUP’s TV channels later this year. Previous editions of “Top Chef” in the region have featured judges including acclaimed chefs Yannick Alléno, Andoni Luis Aduriz, Éric Fréchon, Alex Atala, Éric Briffard, Ghislaine Arabian, Jean-François Piège, Michel Sarran, Alan Geaam, David Rocco, Sébastien Vauxion, and Michael Mina.

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MBC GROUP’s “Top Chef” chooses Saudi Arabia’s NEOM for latest season production

-	Group total revenues up 36% YoY to SAR 1,236 million in 1Q 2024
-	Net income grew nearly eightfold to SAR 121 million YoY in 1Q 2024
-	Group advertising revenue grew 36% YoY (including AVOD) supported by the earlier commencement of Ramadan in 1Q 2024 vs. 1Q 2023
-	Shahid recorded a 72% growth in revenue to SAR 298 million in 1Q 2024 and net losses  significantly narrowed from SAR 102 million in 1Q 2023 to SAR 6 million in 1Q 2024

Riyadh, KSA, 16 May 2024G - MBC GROUP (“MBC” or the “Company” or the “Group” | Tadawul: 4072), the leading media and entertainment conglomerate in the Middle East and North Africa (“MENA”) region, today reported its financial results for the first quarter ended 31 March 2024 (“1Q 2024”). 

1Q - 2024 – Highlights
The Group’s total revenues increased 36% in 1Q 2024 to SAR 1,236 million (US$ 330 million) compared to SAR 909 million (US$ 242 million) in 1Q 2023 driven by a healthy recovery in TV advertising, subscriber growth in Ramadan, and the inclusion of an additional 10 days of Ramadan accounted for in 1Q 2024 compared with 1Q 2023. The Group's gross profit is up 115% year-on-year to SAR 345 million (US $92 million). Net income grew nearly eightfold to SAR 121 million (US$ 32 million). Net income margins for 1Q 2024 were 10% compared to a negative margin of 2% for the same period in 2023. 


Sam Barnett, Chief Executive Officer, MBC GROUP, commented:
"MBC’s performance in the first quarter of 2024 is in line with our expectations, following a strong year in 2023. We recorded revenue growth across our core businesses and more specifically in Shahid with subscriber growth maintaining its solid trajectory year-on-year. As anticipated, advertising has witnessed a decent recovery following a challenging geopolitical backdrop at the end of last year. This Ramadan season we saw a substantial uptick in Shahid’s subscriber base, thanks to our strong line-up of content, including shows like Zawga Waheda La Takfi.”
“I am pleased with the progress we are making across the business. We are meeting all our KPIs for the ongoing government project initiatives. We are also gaining market share in SVOD and AVOD by focusing primarily on locally relevant content. The success of shows such as Thanawiyyat Al-Naseem and Al Kha’en reflects how our content strategy successfully yields subscribers and active users. Looking ahead, we are confident of our ability to retain users and capture viewer engagement.”  he concluded. 

BUSINESS SEGMENT PERFORMANCE 

Broadcasting & Other Commercial Activities  

The Broadcasting & Other Commercial Activities segment recorded a 41% increase in revenue year-on-year for the first quarter of 2024 to reach SAR 775 million (US$ 207 million), compared to SAR 551 million (US$ 147 million) in 1Q 2023. The revenue increase was primarily driven by two main factors, firstly a continued uptick in television advertising revenue, which grew 22% year-on-year, despite the unsettled geopolitical backdrop at the end of last year. The gradual rebound in advertising compared to 4Q 2023 emphasises MBC’s long-term resilience as well as its dominant position in the marketplace. Secondly, the Broadcasting and Technical Services revenue grew nearly eightfold year-on-year to record SAR 143 million (US$ 38 million) in 1Q 2024 compared with SAR 16 million ($US 4.2 million) in 1Q 2023. 

The Holy Month of Ramadan is a key period for MBC and this year, the season commenced in early March. The focus was on premium regional content alongside a diverse line-up of multi-genre series and shows from KSA, the Gulf, Levant, and Egypt. Titles included Al Atawla, Nema El Avoccato, Khan Al Thahab and Wlad Badee’a. 

Shahid (OTT Platform) 

Shahid, MBC’s OTT platform, recorded a 72% growth in revenue to SAR 298 million (US$ 80 million), in 1Q 2024, compared to 1Q 2023, attributable to a significant growth in the number of SVOD subscribers, notably during the peak Ramadan season as anticipated. Shahid subscriber numbers reached 4.83 million in the first quarter, with the platform adding over 800,000 new subscribers since year end, and a solid 35% year-on-year increase of 1.25 million subscribers’ year-on-year. Advertising revenue more than tripled year-on-year to SAR 73.9 million as the Company continues to focus on expanding and further enhancing its content line-up available on the ad-supported free to watch platform. 

Media & Entertainment Initiatives (M&E Initiatives) 

In 1Q 2024 MBC successfully delivered on all its KPI’s related to ongoing government project initiatives. MBC continues to witness a modest improvement in blended margins as new projects start to include production fees, allowing the Company to deliver a margin of 2% to 4% in the short-to-medium term. 

Content 
Testament to MBC’s content strategy and global outreach, the company has begun to successfully penetrate the South American market through the Turkish adoption of ‘Al-Thaman’ (entitled Sara). The show has been dubbed in Spanish, and Ecuador was the first country to air it in early March. It has been doing well with promising viewership, which has opened other potential opportunities for similar agreements in neighbouring countries. South America is an important growth market for MBC, with the potential to take Turkish adaptions further afield. 

Key Corporate Updates
In 1Q 2024, the Company appointed Samar Akrouk as Managing Director of MBC Studios. Samar also retains her position as Group Director of Production. In her new role, she will lead MBC Studios’ international outreach program, taking MBC’s original local content to new audiences around the world.


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