Middle East media giant MBC Group has announced a near fivefold surge in net income for the first half of 2024, driven by strong revenue growth and significant margin improvements across its business segments.
The company reported a net profit of SAR 237.8 million (approximately $63.4 million) for the period, up 359.8 percent compared to the same period last year.
The dramatic increase in profitability comes as MBC Group continues to invest heavily in quality content and engaging platforms to drive viewership and grow its subscriber base. The company’s net profit margin expanded to 10.8 percent in the first half of 2024, up from 2.6 percent in the same period of 2023.
Total revenues for the first half of 2024 reached SAR 2,199.6 million ($586.6 million), representing a 10 percent year-on-year increase. This growth was primarily driven by strong performances in the company’s Broadcasting & Other Commercial Activities segment and its SHAHID over-the-top (OTT) streaming platform.
The Broadcasting segment saw revenues increase by 20.4 percent year-on-year to SAR 1,340.5 million ($357.5 million), buoyed by a doubling of broadcast and technical services revenues. Meanwhile, SHAHID’s revenues grew by an impressive 40.8 percent to reach SAR 557.3 million ($148.6 million), with both subscription and advertising revenues showing robust growth.
Particularly noteworthy was the performance of SHAHID’s advertising-based video-on-demand (AVOD) service, which more than doubled its revenue year-on-year to SAR 116 million ($30.9 million). The streaming platform also saw its subscriber base grow by 36 percent compared to the previous year, reaching 4.61 million users by the end of June 2024.
“We are pleased with the performance of MBC in the first half of 2024. By continuing to invest in quality content and engaging platforms, we have been able to attract and retain audiences across our various markets,” said MBC Group CEO Sam Barnett.
The company’s improved profitability was evident across all three of its main business segments. SHAHID, in particular, saw its bottom-line losses narrow significantly by 84.7 percent year-on-year in the first half of 2024, contributing to the Group’s overall profit surge.
The Media & Entertainment Initiatives segment, while experiencing a 38.5 percent year-on-year decline in revenues due to timing differences in project deliverables, still managed to generate a net income of SAR 6.9 million ($1.84 million) in the first half of 2024. The company noted that this segment is seeing modest improvements in blended margins as new projects start to include management fees.
MBC Group’s traditional broadcasting activities remained a critical part of its business success, with TV revenues growing 5.2 percent year-on-year to SAR 751.4 million ($200.4 million). Advertising revenue increased by 3.5 percent in the first half of 2024, reflecting the company’s resilience and strong market position in the face of changing media consumption habits.
Looking ahead, Barnett said the company is focused on increasing audience engagement and delivering value for all stakeholders.
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