MBC GROUP DELIVERS RESILIENT 1Q 2026 PERFORMANCE ANCHORED BY STRONG MBC SHAHID GROWTH

RIYADH, Saudi Arabia, May 10, 2026 /PRNewswire/ -- MBC GROUP ("MBC" or the "Company" or the "Group") (Tadawul: 4072), the leading media and entertainment conglomerate in the Middle East and North Africa ("MENA") region, today announced its financial results for the three-month period ended 31 March 2026 ("1Q 2026"). The Group reported revenues of SAR 1.6 billion, compared to SAR 2.0 billion in 1Q 2025, primarily reflecting the timing of project-based revenues and a more cautious advertising environment amid ongoing regional geopolitical developments. Net profit reached SAR 222.3 million, down 15.6% year-on-year, while net profit margin expanded to 14.1%, supported by disciplined cost management and a more than threefold increase in MBC SHAHID's net profit.

Overall, the Group's performance demonstrated resilience during the quarter, supported by strong Ramadan-driven content demand, continued subscriber revenue growth in MBC SHAHID, and the strength of its diversified revenue model, which helped offset softer advertising conditions and project timing effects.

Mike Sneesby, Chief Executive Officer of MBC GROUP, commented: "During the first quarter of 2026, our performance reflected the resilience of MBC's diversified operating model amid a more volatile external environment. While revenues were impacted by softer advertising demand and the absence of SSC-related activities that contributed in the same period last year, we still delivered a strong performance, supported by the commitment of our people. Profitability remained healthy, underpinned by disciplined cost management, strong Ramadan performance, and continued growth in MBC SHAHID, where net profit increased significantly year-on-year."

"The current environment presents several near-term challenges, most notably advertising demand volatility, evolving government spending dynamics, and operational complexity across markets. In response, we remain focused on clear management priorities: protecting our revenue streams, sustaining audience engagement, safeguarding production continuity, maintaining tight cost control, preserving cash liquidity, and reinforcing investor confidence."

"MBC SHAHID continues to play a central role, delivering strong growth, improved profitability, and an expanding international footprint. This reinforces our strategic shift toward more diversified and scalable revenue streams, helping to offset advertising cyclicality. Meanwhile, within our broadcast and technical services business, we maintain close visibility on our government project pipeline to support planning and mitigate downside risk. We are also leveraging flexible production models, localisation, and remote execution capabilities to ensure continuity of delivery across markets, while prioritising high-impact content to maximise audience engagement," said Sneesby.

The Broadcasting & Other Commercial Activities (BOCA) segment remained the Group's largest revenue contributor, generating SAR 933.0 million in revenues, down 22.6% year-on-year. The decline reflects the absence of SSC-related revenues compared to 1Q 2025, alongside softer advertising demand, shorter booking cycles, and more cautious advertiser behaviour, particularly across GCC markets. This was partially offset by stable pricing and strong utilisation of Ramadan advertising inventory. The launch of MBC MASR DRAMA also contributed positively by supporting audience engagement and expanding the advertising inventory in Egypt. Net profit for the segment stood at SAR 174.5 million, down from SAR 238.2 million in 1Q 2025, reflecting a lower revenue base and changes in the revenue mix.

MBC SHAHID delivered a strong performance during the quarter, with revenues increasing 17.5% year-on-year to SAR 459.9 million in 1Q 2026, supported by solid subscriber revenue growth across MENA and international markets, which contributed more year-on-year. This performance reflects improved retention and the continued impact of pricing and product optimisation initiatives alongside continued traction in B2B partnerships. AVOD revenues declined modestly due to temporary campaign delays and budget reprioritisation, particularly impacting the travel and tourism sectors, while underlying digital demand remained resilient. MBC SHAHID recorded a net profit of SAR 47.4 million, compared to SAR 13.3 million in the prior-year period, marking a significant 257.7% year-on-year improvement in profitability and reinforcing the platform's role as a key earnings contributor to the Group.

The Media & Entertainment (M&E) segment reported revenues of SAR 183.7 million, compared to SAR 447.2 million in 1Q 2025, reflecting the timing of milestone-based revenue recognition across major projects. Net profit for the segment stood at SAR 0.4 million, compared to SAR 12.0 million in the prior-year period, reflecting the timing of project delivery and associated cost recognition, consistent with the segment's project-based accounting model.

Content remained a key performance driver during the first quarter of 2026, reinforcing MBC's position as the leading producer and distributor of Arabic entertainment. Ramadan content drove higher audience engagement year-on-year and increased playtime across 125 standout titles. Performance was supported by a strong mix of KSA, GCC, and Pan-Arab content, including Share' Al A3sha Season 2, Ghommeida, Sit Monaliza, alongside Mawlana and Bi Khams Arwah, contributing to both engagement and international subscriber revenue growth. The comedy genre continued to serve as a key driver of reach, with Jak El Elm and Yawmiyyat Rajol Motazawwej delivering consistent performance. At the same time, the Pan-Arab adaptation Layl supported strong early-year momentum.

Sports content continued to support engagement and retention, with peak viewership driven by Copa del Rey fixtures, particularly matches involving Barcelona, Real Madrid, and Atlético Madrid. Additional engagement was supported by Bundesliga matches, notably those involving Bayern Munich, as well as regional competitions, including the SAFF Women's Premier League, KSA Women's Friendlies, and the Saudi Basketball Pro League, reinforcing both international appeal and local relevance.

"Looking ahead, while we remain mindful of ongoing geopolitical and macroeconomic uncertainty, we are confident in our ability to navigate the current backdrop, supported by the experience and track record of our management team. Our focus remains on disciplined execution, optimising our cost base, and selectively investing in content and platforms that strengthen our long-term competitive positioning. With a strong operating model, clear market leadership, and a well-defined strategy, we believe MBC is well positioned to sustain performance and deliver long-term value," Sneesby concluded.

About MBC GROUP
Founded 35 years ago, MBC GROUP is the leading media and entertainment conglomerate in the Middle East and North Africa region. The Group has firmly established itself as a household name, boasting an extensive presence that attracts over 150 million viewers every week. Its global accessibility extends from the Middle East to South America through MBC SHAHID, the number one Over-the-Top ("OTT") online streaming platform in MENA.

In addition to MBC SHAHID, MBC operates 14 free-to-air (FTA) TV channels and three radio stations. The Group continues to expand its regional presence across multiple entertainment verticals, including gaming, events, and music. MBC GROUP's platforms connect families across generations through a rich and engaging content library tailored to Arab audiences worldwide.

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