Saudi broadcaster MBC Group has obtained SAR 69 million ($18.5 million) in 2023 net profit, a 44.8% increase compared to the year prior, in the first financial results the company has published since going public on the Saudi Stock Exchange.
MBC Group’s gross profit surged by 43.7% year-on-year to SAR 921 million ($245.7 million), while Group’s total revenues increased by 6.2% to SAR 3.7 billion ($987.7 million).
The company said the growth was driven by an increase in subscribers to its Shahid platform, the leading Arabic language service, as well as a material decrease in net losses.
Shahid’s subscriber base reached 3.98 million, up c.40% year-on-year due to targeted marketing campaigns, an engaging content line-up, and exclusive sports offerings, MBC Group said. Moreover, advertising more than doubled, driven by Shahid’s growing advertising video on demand (AVOD) platform.
The results are great news to all the investors who participated in the company’s initial public offering (IPO) on the Saudi Tadawul. The IPO saw the company raise SAR 831 million, with the first day of trading delivering a 30% bounce.
“After our successful listing on the Saudi Exchange in January 2024, we are pleased to announce strong financial and operating results for 2023,” said Waleed bin Ibrahim Al Ibrahim, Chairman, MBC Group.
“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,” he added.
Sam Barnett, CEO, MBC Group, added: “Looking ahead to 2024, MBC GROUP is poised for continued growth and innovation. 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.”
Earlier this week, MBC Group announced it had acquired a 13.7% stake in the music streaming platform Anghami. The purchase was estimated to have had a cost of around $4.074 million, although the details of the deal were not disclosed.