Cover Story
Cover Story
In his annual overview of the MENA broadcast sector , Chris Forrester says that despite challenges , there is major progress to report .
MENA media makes progress
This time last year , we anticipated considerable advances in terms of local production and creative excellence throughout the MENA region . We said : “ Few doubt that by CABAST 2024 , there will be other success stories to report ”.
We were right , and despite the April floods – which if nothing else saw the region ’ s news channels gather record viewing numbers – the local reports all talk of buoyant plans and widespread consumer acceptance . However , for broadcasters trying to monetise their output , there are significant challenges from deliberate and blatant piracy .
Perhaps the biggest story of the past year occurred not in Dubai or Abu Dhabi , or in Cairo or Beirut , but in Riyadh and the important Initial Public Offering ( IPO ) at MBC . The offering took place in mid- December 2023 and the comprehensive 634- page Prospectus made compelling reading . Some 33.4 million shares were on offer and the end result – much over-subscribed - saw MBC ’ s capital rise 11.11 %. The shares were introduced onto the Tadawul Riyadh bourse on January 8 2024 . RESPONSE . The initial response was extremely positive , and MBC ’ s shares rose spectacularly from the offer price of 25 Saudi Riyals (€ 6.21 ) to SAR 79.90 by January 22 . Since then , there have been a few ups and
8 EUROMEDIA downs but as this is written , their price has settled in the 52 SAR to 55 SAR range , which is a very nice return for those early investors . CNN Arabia , in its report on the IPO , described the stock as “ hot ” and gave MBC a valuation of some $ 3 billion (€ 2.8bn ). It means that MBC , by any measure , remains firmly at the very top in terms of production , viewership and influence . It now has the funds to finance its 5-year growth plan .
The Saudi government holds onto 54 % stake in MBC ( through Istedamah Holding Company ), while MBC Group chairman Waleed bin Ibrahim Al Ibrahim holds a 36 % stake . The overall aim for MBC is closely aligned with Saudi Arabia ’ s Vision 2030 initiative to open up the Kingdom and to diversify away from its traditional oil-based economy . PROGRESS . The IPO is a dramatic move and consolidates the progress made by the business since its formation in London in 1991 , when it became the very first nongovernmental privately-funded Arab satellite channel , and its immediate success helped create the dominant satellite market across the MENA region .
The IPO created fresh investment for working capital and one of the key beneficiaries is MBC ’ s ‘ Shahid ’ OTT streaming offering . MBC ’ s long-standing and respected
CEO Sam Barnett told the market in early April 2024 that the number of subscribers to Shahid platform leapt 40 % to nearly four million by the end of 2023 compared with a year earlier ( with 15 million ‘ active users ’). He added that the group managed to significantly cut Shahid ’ s net losses .
The report was the first public statement following the IPO . Barnett said total revenues in 2023 reached SAR 3.7 billion , a 6.2 % Y-o-Y increase , “ driven by solid growth across all the group ’ s income-generating business segments , notably Shahid ”. He added : “ One of the key reasons for the substantial rise in net income was the outstanding performance of Shahid , which saw a strong increase in subscribers in 2023 to almost 4 million . We also managed to significantly reduce Shahid ’ s net losses , which further enhanced our bottom line . The net income margin for 2023 was 2 %, which is in line with the group ’ s guidance for the year .” INVESTMENT . The IPO cash also allows further investment outside the nearby-Gulf markets . Barnett said : “ We plan to continue investing in our production of high-quality Arabic content , which gives us a competitive edge over other global streaming platforms . We are also looking to further grow our subscriber and viewer base outside of our core markets , in countries with an Arabic-speaking population . Furthermore , in 2023 , our focused