Sam Barnett, CEO of MBC Group
MBC Group’s performance improved in the first quarter of 2024, helped by various activities, including the Shahid platform that recorded growth in its market share, CEO Sam Barnett told Al Arabiya TV.
The Shahid platform witnessed growth before and during the holy month of Ramadan, and the TV advertisements increased during this period, Barnett said, indicating that the ads improved although not all advertisers returned due to the ongoing geopolitical conditions.
The first quarter witnessed the return of ads, and the other structural reason was the fact that Ramadan goes back 10 days every year. In 2024, nearly 20 days of Ramadan fell in the first quarter of this year, compared to 10 days in the same period of 2023, which reflected positively on the results.
The TV advertising sector grew by 22% year-on-year (YoY) in the first quarter of 2024, Barnett said, adding that, despite the flotation of the Egyptian pound, the group witnessed an increase in advertising spending in Egypt when calculated in dollars.
Shahid’s revenues for both the free and paid versions leapt by 72% YoY, and ads tripled in the first three months of 2024, which was partly due to the reactivation of the free Shahid version in early 2023.
Shahid subscriptions grew before Ramadan and then leapt during the holy month amid an increase in viewers’ interest in the content. Usually, this leap in Shahid subscriptions ends at the end of Ramadan and then the growth continues during the rest of the year.
“We have seen this pattern over the past years,” the CEO said, expecting it to continue in 2024.
Regarding Shahid’s swing to profitability, Barnett pointed out the platform will likely reach the break-even point within five years, five months of which have passed. He indicated that the first quarter was strong, while the second and third quarters will be considered to see if the group will re-evaluate the previously-specified timeline ranging from four to five years. Thus, the timeline to reach profitability may be adjusted ahead.
Further, the top executive added that, according to the latest statistics of Data Access Research, Shahid’s market share rose from 23.2% previously to 24.9%.
The real strength in the TV and Shahid is the Arabic content; hence the content will remain the basis for the group, the CEO said, adding that MBC has several projects to implement in the coming period.
Everything achieved previously, especially in the last quarter, gives the group confidence that it will continue to see growth in the TV, Barnett said.
As for Shahid, it is a growth driver as the percentage of the platform subscribers in the Middle East is much lower than that in the mature markets. Thus, Shahid is an excellent platform to achieve further growth, he concluded.
MBC reported a net profit of SAR 121.3 million in Q1 2024, compared to a net loss of SAR 18 million a year ago, according to data available with Argaam.
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