Founded over 30 years ago, MBC GROUP is the leading media and entertainment conglomerate in the Middle East and North Africa region
The Group delivered a strong financial and operational performance, with an 11.6% YoY revenue increase
MBC GROUP, 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.”
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.
