MBC GROUP SHOWS STRONG PERFORMANCE IN Q1 2026 THANKS TO THE STRONG GROWTH OF MBC SHAHID

RIYAD, Saudi Arabia, May 11, 2026 / PRNewswire / – MBC GROUP (“MBC” or the “company” or the “group”) (Tadawul: 4072), the leading media and entertainment conglomerate in the Middle East North Africa region (“MENA”), today announced its financial results for the quarter ended March 31, 2026 (“Q1 2026”). The group reported revenue of 1.6 billion SAR, down from 2.0 billion SAR in the first quarter of 2025, mainly reflecting the timing of project-related revenues and a more cautious advertising environment in the context of ongoing regional geopolitical developments. Net profit reached 222.3 million SAR, down 15.6% year-on-year, while net profit margin increased to 14.1%, thanks to disciplined cost management and more than threefold increase in net profit from MBC SHAHID.

Overall, the group’s performance demonstrated resilience during the quarter, supported by strong demand for Ramadan-related content, continued growth in MBC SHAHID subscriber revenues, and the strength of its diversified revenue model, which helped offset weaker advertising conditions and project timing effects.

Mike Sneesby, CEO of MBC GROUP, stated: “During the first quarter of 2026, our performance reflected the resilience of MBC’s diversified operational model in a more volatile external environment. While revenues were impacted by weaker advertising demand and the absence of SSC-related activities that had contributed to the same period last year, we still delivered a strong performance, supported by the commitment of our employees. Profitability remained healthy, thanks to rigorous cost management, strong performance during Ramadan, and continued growth of MBC SHAHID, whose net profit increased significantly year-on-year.”

“The current environment presents several short-term challenges, including advertising demand volatility, evolving public spending dynamics, and operational market complexity. In response, we remain focused on clear management priorities: protecting our revenue sources, maintaining audience engagement, preserving production continuity, strict cost control, safeguarding liquidity, and enhancing investor confidence.”

“MBC SHAHID continues to play a central role, with strong growth, improved profitability, and increasing international presence. This reinforces our strategic focus on more diverse and evolving revenue sources, helping to offset the cyclical nature of advertising. Simultaneously, within our broadcasting and technical services business, we closely monitor our government projects pipeline to support planning and mitigate downside risks. We also leverage flexible production models, localization, and remote execution capabilities to ensure broadcast continuity across different markets, prioritizing high-impact content to maximize audience engagement,” Sneesby concluded.

The Broadcasting & Other Commercial Activities (BOCA) segment remained the group’s largest revenue contributor, generating 933.0 million SAR revenues, a 22.6% decrease year-on-year. This decline reflected the absence of SSC-related revenues compared to the first quarter of 2025, as well as weaker advertising demand, shorter reservation cycles, and more cautious advertiser behavior, especially in the GCC markets. This trend was partially offset by stable prices and strong advertising inventory utilization for Ramadan. The launch of MBC MASR DRAMA also made a positive contribution in supporting audience engagement and expanding advertising inventory in Egypt. The segment’s net profit stood at 174.5 million SAR, down from 238.2 million SAR in Q1 2025, reflecting a lower revenue base and changes in revenue composition.

MBC SHAHID delivered strong performances during the quarter, with a 17.5% year-on-year revenue increase to 459.9 million SAR in Q1 2026, supported by strong subscriber revenue growth in MENA and international markets, both contributing more than the previous year. This performance reflects improved retention and continued impact of pricing and product optimization initiatives, as well as ongoing B2B partnerships. Video-on-demand revenues slightly decreased due to temporary campaign delays and budgetary priority adjustments, particularly affecting the travel and tourism sectors, while underlying digital demand remained strong. MBC SHAHID recorded a net profit of 47.4 million SAR, up significantly by 257.7% year-on-year, strengthening the platform’s contribution to the group’s profits.

The Media & Entertainment (M&E) segment reported revenues of 183.7 million SAR, compared to 447.2 million SAR in Q1 2025, reflecting lower revenue recognition timing on key projects. The sector’s net profit amounted to 0.4 million SAR, down from 12.0 million SAR in the previous year, reflecting project delivery timing and associated cost accounting under the project-based accounting model.

Content remained a key driver of performance in the first quarter of 2026, enhancing MBC’s position as the leading producer and distributor of Arabic entertainment. Ramadan content increased audience engagement year-on-year and extended viewing time across 125 flagship titles. Performances were supported by a strong combination of content from Saudi Arabia, the GCC, and the wider Arab world, including the likes of Share’ Al A3sha season 2, Ghommeida, Sit Monaliza, Mawlana, and Bi Khams Arwah, contributing to both international subscriber engagement and revenue growth. Comedies remained a key driver, with Jak El Elm and Yawmiyyat Rajol Motazawwej maintaining consistent performances. Additionally, the pan-Arab adaptation Layl supported strong momentum early in the year.

Sports content continued to drive engagement and retention, with audience peaks during Copa del Rey matches, especially involving FC Barcelona, Real Madrid, and Atletico Madrid. Bundesliga matches, especially those featuring Bayern Munich, as well as regional competitions such as the SAFF Women’s Premier League, KSA Women’s Friendlies, and the Saudi Basketball Pro League, contributed to enhancing international appeal and local relevance.

Sneesby stated, “Looking ahead, while we remain mindful of geopolitical and macroeconomic uncertainties, we are confident in our ability to navigate the current environment, thanks to the experience and proven skills of our leadership team. We continue to focus on disciplined execution, optimizing our costs, and selectively investing in content and platforms that strengthen our long-term competitive position. With a strong operational model, a leading market position, and a well-defined strategy, we believe that MBC is well positioned to maintain performance and create long-term value.”

About MBC GROUP Founded 35 years ago, MBC GROUP is the leading media and entertainment conglomerate in the Middle East and North Africa. The group has established itself as a key player, with an extensive presence engaging over 150 million viewers weekly. Its global accessibility spans from the Middle East to South America through MBC SHAHID, the number one OTT broadcasting platform in the MENA region.

In addition to MBC SHAHID, MBC operates 14 free-to-air television channels and three radio stations. The group continues to expand its regional presence across various entertainment verticals, including gaming, events, and music. MBC GROUP platforms bring operations together through a rich and appealing content library tailored to Arab audiences worldwide.

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