MBC Group revenue falls 22.8% as streaming carries the load

By Amara Osei

MBC Group booked SAR 3 billion (€0.7 billion) in revenue for the first nine months of 2026, down 22.8 per cent from SAR 3.8 billion a year earlier. The MENA media and entertainment conglomerate reported the figure on November 10 for the period ended September 30, and the story inside it is a familiar one: advertising is hurting, streaming is not.

Gross profit reached SAR 857.4 million, with the margin held at 28.9 per cent while general and administrative expenses fell 6.1 per cent year-on-year. Discipline, at least, is cheap. The top-line decline reflects softer advertising demand plus a lower contribution from Broadcast & Technical Services, where major contracts have concluded. Growth at the VoD platform MBC Shahid and a stronger Q3 from the media and entertainment arm partly cushioned the fall.

The reported net loss of SAR 483 million looks dramatic. It isn't, mostly. A SAR 575.5 million fair-value loss on the group's stake in Arabian Contracting Services Company (ACSC) and other investment movements did the damage. Strip those out, and normalised net profit came in at SAR 95.7 million — still down sharply from SAR 345.8 million in 9M 2025, but positive.

Can Shahid carry the group?

It currently does a fair impression. MBC Shahid grew revenue 15.9 per cent year-on-year to SAR 1.2 billion and swung to a net profit of SAR 57.3 million, against a net loss of SAR 23.3 million in the same period last year. Gross profit jumped 46.7 per cent.

The drivers read like a streaming textbook: B2C and B2B subscription growth, pricing adjustments that actually stuck, international expansion and cost control. Management expects Shahid to hit full-year profitability in FY 2026. On these numbers, that forecast looks reasonable rather than hopeful.

What does the CEO say about advertising?

Plenty, and mostly in a minor key. Chief Executive Officer Mike Sneesby said the group "continued to demonstrate the strength and resilience of its diversified business model", while advancing its digital strategy and keeping costs in check.

On the advertising picture, he was more specific. In the Broadcasting and Other Commercial Activities (BOCA) segment, "advertising conditions remained challenging, with regional uncertainty driving shorter booking cycles, campaign cancellations and adjustments to campaign timing."

Then the note of optimism: "as geopolitical tensions eased during Q3, we began to see early signs of recovery in advertising demand, with year-on-year declines moderating compared with Q2. This reinforces our confidence that the current market weakness reflects cyclical pressures rather than structural challenges, with recovery potential when regional conditions stabilise."

The Q3 numbers back him up, mildly. Group revenue for the quarter was SAR 679.8 million, down 16.1 per cent year-on-year — a narrower decline than the nine-month average, which is the sort of improvement that only a chart can love.

What happens in Q4?

Pricing improvements and tailored advertising solutions softened the volume declines, Sneesby said, and partnerships with key advertisers and agencies aim to sustain momentum through year-end and into Ramadan. He conceded that renewed regional tensions are expected to weigh on Q4 demand, while keeping the business positioned to capture a recovery.

The stated priorities ahead: build on market leadership, accelerate digital growth and expand geographically to diversify revenue away from regional volatility. A sensible plan, though geography has been the whole problem.

Whether the advertising cycle turns or not, the group's immediate future rests on Shahid converting nine months of profit into a full-year result — with management's FY 2026 profitability target as the next checkpoint.