Shahid's subscriber count surged to approximately 3.98m, marking a year-on-year increase of around 40%, propelled by focused marketing efforts, content selections, and exclusive sports content.
MBC Group has released its financial results for FY 2023 (ending 31 December 2023G), showcasing growth across its core business segments. The company reported a 6.2% increase in total revenues, reaching SAR 3.7bn ($987.7m) compared to FY 2022. Gross profit surged by 43.7% year-on-year to SAR 921m ($245.7m), while net income saw a remarkable 44.8% rise to SAR 69m ($18.5m), exceeding the group’s targets. This performance was attributed to a substantial decrease in Shahid’s net losses and a significant revenue boost from advertising video-on-demand (AVOD) and subscription video-on-demand (SVOD) platforms. Net income margins for FY 2023 stood at 2%.
The announcement marks MBC Group’s first financial disclosure since its listing on the Saudi Exchange (Main Market) on 8 January 2024G, following a successful primary initial public offering (IPO) that raised SAR 831m ($222m).
Waleed bin Ibrahim Al Ibrahim, Chairman of MBC Group, said: “After our successful listing on the Saudi Exchange in January 2024, we are pleased to announce strong financial and operating results for 2023. These results demonstrate the Group’s ability to maintain its leading position in the media and entertainment industry and contribute to developing the Kingdom of Saudi Arabia’s media ecosystem in line with KSA Vision 2030.”
“In anticipation of MBC’s inaugural year as a listed company, we’re leveraging our unique business model to take advantage of robust macro fundamentals to fuel sustainable growth. We are poised to reshape the media and entertainment landscape through strategic investments in innovative products and services across all sectors with our experienced management team and supportive shareholders. Our commitment is to continue pioneering cutting-edge technologies and delivering groundbreaking viewing experiences, setting new industry standards,” he added.
Sam Barnett, Chief Executive Officer of MBC Group, stated: “During 2023, we delivered on our plans for Broadcasting & Other Commercial Activities, Shahid, and M&E Initiatives. Particularly on Shahid, we leveraged content, technology, and marketing efforts to drive SVOD subscribers. We adopted a new content release strategy for our AVOD platform, resulting in increased growth and a significant rise in AVOD advertising revenue. Our efforts have driven Shahid SVOD subscribers to surpass our targets, reaching just under 4m, while our AVOD revenues have grown by 143% compared to 2022, reaching SAR 112m ($30m).”
“Looking ahead to 2024, MBC Group is poised for continued growth and innovation. We remain committed to delivering exceptional content and experiences to our audiences and subscribers while maximising value for our advertisers and shareholders. We expect an increase in advertising revenue across all our platforms and anticipate Shahid’s strong growth momentum to continue. We are confident in our ability to capture new opportunities within our home market and beyond to drive long-term sustainable growth,” he concluded.
In FY 2023, MBC’s Broadcasting & Other Commercial Activities (excluding Shahid) encompassed revenue streams from advertising on free-to-air (FTA) channels, along with various media-related ventures. These activities comprised service agreements, such as the partnership with the Saudi Sports Company (SSC), as well as revenue from third-party content sales and other ventures like gaming, events, and music.
Throughout the fiscal year, MBC’s Broadcasting & Other Commercial division upheld its position across diverse sectors through strategic launches and expansions. Highlights included the revival of the acclaimed Tash Al Awda series and the introduction of new releases like Room 207 and London Class. Notably, MBC premiered Kandhar, the first international movie produced in Saudi Arabia, featuring Gerard Butler. Furthermore, the division extended its service agreement with the Saudi Sports Company (SSC) for the Saudi Premier League, consolidating its presence in the sports broadcasting arena.
Despite a 12% year-on-year decline in TV advertising, Broadcasting & Other Commercial Activities revenue saw a 3.2% increase to SAR 2,003m in FY 2023. This growth, propelled by Other Commercial Activities and the extension of the service agreement with the Saudi Sports Company, counteracted the decrease in advertising revenue. Additionally, MBC invested in fostering relationships with leading local and international agencies to boost advertising revenue. Furthermore, the group is advancing its technological capabilities by adopting international-standard technologies to seamlessly incorporate targeted advertisements into free-to-air channels.
The company operates a thriving online video streaming service across SVOD and AVOD platforms, with revenue primarily fueled by subscription fees and digital advertising on AVOD.
Revenue from Shahid surged impressively by 51% year-on-year, reaching SAR 836m ($223m) compared to SAR 552.3m ($147.3m) in 2022. This remarkable growth underscores the platform’s popularity and reflects the success of the company’s growth strategy. Notably, Shahid’s net losses decreased by SAR 110m ($29m) in 2023 compared to 2022, positioning the company on track to achieve its goal of breaking even within five years.
Shahid’s SVOD subscribers reached 3.98m, with approximately 1m new subscribers added from 2022 to 2023. Key drivers of the 40% subscriber growth include targeted marketing efforts, a compelling content lineup, enhanced sports offerings such as the Saudi Premier League in 4K, and strategic business partnerships driving subscription growth in KSA and Egypt.
Furthermore, the company’s AVOD platform attracted an average of 15m monthly active users in 2023, marking a 25% increase from the previous year. Digital advertising revenue on the AVOD platform more than doubled year-on-year, primarily attributed to an expansion in advertising inventory and a strategic focus on AVOD content, with approximately 90% of content available on the free-to-watch platform. Popular shows like Al Thaman and Crystal contributed to the platform’s success, supported by a dedicated team within MBC’s advertising arm, MBC Media Solution (MMS), focused on executing the digital advertising strategy.
The company prioritises 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 Kingdom’s broader goals of development and progress. While distinct from MBC’s core commercial operations, these initiatives underscore the Group’s commitment to societal advancement and align with its overarching mission.
