Net profitability across the Group’s three business segments showed solid improvement in 9M 2024, led by Shahid’s performance which delivered a YoY increase of 35.9% in revenue.
Announcing its financial results for the nine-month period (9M 2024) ending September 30, 2024, the MBC Group revealed a strong financial and operational performance. The company reported an 11.6% year-on-year (YoY) revenue increase to SAR2.9bn and a 378% YoY rise in net profit to SAR250.5m.
Commenting on the report, Sam Barnett, MBC Group’s Chief Executive Officer, said: “MBC Group’s nine-month results show revenues nearing SAR3bn 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 SAR3bn. 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 SAR891.4m, 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 SAR250.5m, underscoring the Group’s strategic focus on revenue growth and cost optimisation.
Moving to the Group’s quarterly performance, revenue reached SAR757.1m in Q3 2024, illustrating resilience in MBC’s core business segments, despite seasonal cyclicality impacting some advertising sectors. Shahid contributed SAR248.3m (up 25.9% YoY) while BOCA recorded SAR430.4m (a 21.6% YoY increase).
Content continued to expand in Q3 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.
