MBC Group CEO, Mike Sneesby
MBC Group CEO Mike Sneesby said the group delivered resilient performance in H1 2026 despite continued market challenges, noting that net profit was affected by the accounting treatment of share-price movements related to the group’s investments in ACSC and Anghami. 
In an interview with Argaam, Sneesby said the group posted adjusted net profit of SAR 178 million excluding this impact. Revenue reflected weaker advertising demand, the expiry of key contracts in broadcasting and technical services, and the timing of revenue recognition for certain media and entertainment projects.
The group took proactive measures in Q2 2026 to mitigate the impact of lower advertising revenue, including cost optimization, improved operational efficiency and margin protection, helping lifting the gross profit margin to 34% from 30.8% in Q2 2025.
Advertising revenue reflected a more cautious market environment, with advertisers taking a more measured approach, resulting in lower budgets, delayed campaigns and shorter booking cycles. While some sectors remained cautious, others continued to invest.
The MBC Shahid platform continued to deliver strong growth and is on track to reach profitability earlier than initially guided. We now expect the platform to reach full-year profitability in FY 2026, one year ahead of the FY 2027 target, marking a significant milestone for the business.
What is your assessment of MBC GROUP’s H1 results? What were the key factors that drove performance during the period?
The Group delivered aresilient 1H 2026 performance despite ongoing market challenges, demonstrating the strength of our diversified business model and ability to generate sustainable earnings across market cycles.
At the bottom line, profitability was impacted by the accounting treatment for share price movements related to our investment in ACSC and Anghami. Excluding these items, we reported a positive normalized net profit ofSAR 178 million for the period. Revenues reflected softer advertising demand, the conclusion of major Broadcast Technical Services contracts, and the timing of revenue recognition for projects within the Media Entertainment segment.
During 2Q 2026, we took proactive measures to mitigate the impact of lower advertising revenues, including cost optimization initiatives, improved operational efficiency, and continued focus on margin protection, contributing to improved gross profit margins of 34% from 30.8% in 2Q 2025.
Our performance was supported by key growth drivers across the portfolio. BOCA remained the Group’s largest revenue contributor, with geographic diversification through MBC MASR helping to partially offset broader market softness. MBC SHAHID continued to deliver strong growth and profitability, with the platform on track to achieve full-year profitability in FY 2026 ahead of plan, representing an important strategic milestone for the Group.
Overall, these results reflect the effectiveness of our strategy, the benefits of our diversified portfolio and our ability to adapt across changing market conditions.
The region has experienced geopolitical tensions that have affected the business environment. To what extent has this impacted advertising spending? Have advertisers returned to their normal marketing budgets, or do you still see a degree of caution?
Our advertising revenues reflected a more cautious market environment, as advertisers adopted a more measured approach, resulting in lower budgets, delayed campaigns, and shorter booking cycles. While some sectors remained cautious, others continued to invest, demonstrating that demand remained active across parts of the market.
In response, we remained close to our advertisers and continued to evolve our commercial offering through more flexible pricing, bundled solutions, stronger audience measurement capabilities, and expanded premium digital advertising offerings. We retained the majority of our advertisers through Ramadan, reflecting the strength of our commercial relationships and the value of our platforms.
Our geographic diversification, including through MBC MASR, provided further support, contributing to positive year-on-year advertising growth. At the same time, we continued to see strong demand for our SVOD offering, highlighting consumers’ willingness to spend on premium entertainment experiences and providing greater balance across our revenue streams. Our AVOD business also remained resilient, supported by continued innovation in advertising formats, expanded digital inventory, and growth in our digital client base.
We continue to prioritize the fundamentals that support long-term growth, investing in compelling content, engaging audiences, a strong production pipeline, reliable delivery capabilities, and data-led solutions. Geographic diversification andselectively pursuing growth opportunities in regional marketswill also remain important to our strategy, positioning the Group to capture new opportunities and deliver sustainable long-term value.
How would you assess Shahid’s performance during the second quarter compared to the same period last year, in terms of subscriber growth, revenue, and profitability? Do you expect digital advertising revenue to account for a larger share of the platform’s revenue going forward?
MBC SHAHID has continued to deliver strong growth, and we are now on track for it to reach profitability ahead of original guidance. We now expect full-year profitability in FY2026, one year ahead of FY2027, which is a significant milestone for the business.
Growth was primarily driven by continued expansion in subscription revenues. Total SVOD revenues increased by 23.3%, supported by robust subscriber growth across MENA and international markets, healthy retention, disciplined pricing, and the continued momentum from B2B partnerships.
While AVOD revenues reflected the softer regional demand amid ongoing uncertainty, the segment remained resilient. As current market conditions in the region have impacted the advertising market, AVOD has experienced a temporary impact. We expect that, as market conditions improve, AVOD will recover and return to its growth trajectory.
International momentum remains strong, driven by audiences outside MENA, underscoring the Group’s expanding global footprint, with international subscribers’ revenues increasing 12% year-on-year. We continue to see attractive opportunities across international markets, driven by localized content, targeted market strategies and strategic partnerships, including our partnership with Ooredoo in Tunisia. At the same time, we continue to invest in the capabilities that enable us to scale efficiently, including payment security, automation and user experience enhancements.
How did MBC SHAHID’s investments in Ramadan content and original productions affect profit margins during the first half? Do you expect content spending to moderate in the second half of the year?
Our content investments during Ramadan are part of our broader programming strategy and are planned based on seasonality and audience demand. While Ramadan is a key period for content activity, we do not expect a material year-on-year change in overall content investment levels, as we continue to invest in compelling content throughout the year to serve audiences across different seasons and markets.
Content remains at the heart of our strategy and continued to be a primary driver of audience engagement during 1H 2026. Following a strong Ramadan season, we maintained momentum through the second quarter with a diverse range of drama, entertainment, Arabic adaptations, and locally produced Originals that continued to resonate with audiences across the region.
MBC SHAHID’s content strategy delivered strong results, with Layl emerging as the leading title, highlighting the continued strength of our Arabic storytelling capabilities. The Voice Kids also delivered strong audience engagement, while MBC SHAHID’s broad range of programming continued to attract viewers across Pan-Arab, Egyptian, GCC, and Turkish content. During the period, we launched six MBC SHAHID Originals, with Hofrat Jahannam, Forsan Greih Season 2, and Mercato each attracting more than one million viewers. A further nine Originals are planned for the second half of the year.
Going forward, the Group’s priority will be to accelerate MBC SHAHID’s top-line growth through disciplined strategic investment in premium Arabic content, product and platform enhancements, strategic B2B partnerships and targeted international expansion. Accordingly, we will retain flexibility to reinvest in attractive growth opportunities rather than prioritising further near-term margin expansion, while maintaining a disciplined approach to monetisation and capital allocation.
How does the group plan to balance investment in production capabilities with changing audience behaviours to maintain growth and competitiveness in an increasingly competitive media landscape?
Consumer behaviour continues to evolve rapidly, with audiences engaging across a wider range of formats, platforms and experiences. The shift towards short-form video, vertical content, user-generated formats and emerging categories such as micro dramas highlights the need for us to remain agile and continue adapting how we develop, package and distribute content. Our priority is to ensure we continue meeting audiences wherever they choose to engage, while maintaining the quality and relevance that define our offering.
Across our markets, we see significant opportunities to build on our existing strengths while responding to the broader transformation taking place across the region’s media sector. Saudi Arabia’s investment in building a world-class ecosystem for content creation and entertainment is creating new opportunities for growth, attracting international productions and supporting the development of local talent and stories with global potential.
The continued expansion of Al Narjis is an important part of this journey for us, strengthening our production capabilities and providing the infrastructure needed to support a growing content slate. With Studios 1, 2 and 3 operational, alongside the introduction of a new in-house Control Room during Q2, we are enhancing our ability to deliver a broader range of productions with greater efficiency, flexibility and operational control.
Looking ahead, our focus remains on combining our regional expertise, production capabilities and understanding of audiences to create content that resonates locally while competing on a global stage.
Looking ahead, what are your priorities for the group in the coming period?
We remain focused on disciplined execution, optimizing our cost base and selectively investing in content and platforms that strengthen our long-term competitive positioning and support sustainable growth.
At the same time, we are strengthening the business through greater use of data and AI, improved monetisation and strategic capital allocation, enhancing the way we create, distribute and monetise content while improving scalability, productivity and the user experience. These investments support our strategic priorities of transforming our broadcasting business, strengthening MBC SHAHID’s leadership across both SVOD and AVOD, reinforcing our leadership in content and audiences, and pursuing selective expansion while continuing to drive operational excellence.
MBC Group CEO, Mike Sneesby
MBC Group CEO Mike Sneesby said the group delivered resilient performance in H1 2026 despite continued market challenges, noting that net profit was affected by the accounting treatment of share-price movements related to the group’s investments in ACSC and Anghami.
In an interview with Argaam, Sneesby said the group posted adjusted net profit of SAR 178 million excluding this impact. Revenue reflected weaker advertising demand, the expiry of key contracts in broadcasting and technical services, and the timing of revenue recognition for certain media and entertainment projects.
The group took proactive measures in Q2 2026 to mitigate the impact of lower advertising revenue, including cost optimization, improved operational efficiency and margin protection, helping lifting the gross profit margin to 34% from 30.8% in Q2 2025.
Advertising revenue reflected a more cautious market environment, with advertisers taking a more measured approach, resulting in lower budgets, delayed campaigns and shorter booking cycles. While some sectors remained cautious, others continued to invest.
The MBC Shahid platform continued to deliver strong growth and is on track to reach profitability earlier than initially guided. We now expect the platform to reach full-year profitability in FY 2026, one year ahead of the FY 2027 target, marking a significant milestone for the business.
What is your assessment of MBC GROUP’s H1 results? What were the key factors that drove performance during the period?
The Group delivered aresilient 1H 2026 performance despite ongoing market challenges, demonstrating the strength of our diversified business model and ability to generate sustainable earnings across market cycles.
At the bottom line, profitability was impacted by the accounting treatment for share price movements related to our investment in ACSC and Anghami. Excluding these items, we reported a positive normalized net profit ofSAR 178 million for the period. Revenues reflected softer advertising demand, the conclusion of major Broadcast Technical Services contracts, and the timing of revenue recognition for projects within the Media Entertainment segment.
During 2Q 2026, we took proactive measures to mitigate the impact of lower advertising revenues, including cost optimization initiatives, improved operational efficiency, and continued focus on margin protection, contributing to improved gross profit margins of 34% from 30.8% in 2Q 2025.
Our performance was supported by key growth drivers across the portfolio. BOCA remained the Group’s largest revenue contributor, with geographic diversification through MBC MASR helping to partially offset broader market softness. MBC SHAHID continued to deliver strong growth and profitability, with the platform on track to achieve full-year profitability in FY 2026 ahead of plan, representing an important strategic milestone for the Group.
Overall, these results reflect the effectiveness of our strategy, the benefits of our diversified portfolio and our ability to adapt across changing market conditions.
The region has experienced geopolitical tensions that have affected the business environment. To what extent has this impacted advertising spending? Have advertisers returned to their normal marketing budgets, or do you still see a degree of caution?
Our advertising revenues reflected a more cautious market environment, as advertisers adopted a more measured approach, resulting in lower budgets, delayed campaigns, and shorter booking cycles. While some sectors remained cautious, others continued to invest, demonstrating that demand remained active across parts of the market.
In response, we remained close to our advertisers and continued to evolve our commercial offering through more flexible pricing, bundled solutions, stronger audience measurement capabilities, and expanded premium digital advertising offerings. We retained the majority of our advertisers through Ramadan, reflecting the strength of our commercial relationships and the value of our platforms.
Our geographic diversification, including through MBC MASR, provided further support, contributing to positive year-on-year advertising growth. At the same time, we continued to see strong demand for our SVOD offering, highlighting consumers’ willingness to spend on premium entertainment experiences and providing greater balance across our revenue streams. Our AVOD business also remained resilient, supported by continued innovation in advertising formats, expanded digital inventory, and growth in our digital client base.
We continue to prioritize the fundamentals that support long-term growth, investing in compelling content, engaging audiences, a strong production pipeline, reliable delivery capabilities, and data-led solutions. Geographic diversification andselectively pursuing growth opportunities in regional marketswill also remain important to our strategy, positioning the Group to capture new opportunities and deliver sustainable long-term value.
How would you assess Shahid’s performance during the second quarter compared to the same period last year, in terms of subscriber growth, revenue, and profitability? Do you expect digital advertising revenue to account for a larger share of the platform’s revenue going forward?
MBC SHAHID has continued to deliver strong growth, and we are now on track for it to reach profitability ahead of original guidance. We now expect full-year profitability in FY2026, one year ahead of FY2027, which is a significant milestone for the business.
Growth was primarily driven by continued expansion in subscription revenues. Total SVOD revenues increased by 23.3%, supported by robust subscriber growth across MENA and international markets, healthy retention, disciplined pricing, and the continued momentum from B2B partnerships.
While AVOD revenues reflected the softer regional demand amid ongoing uncertainty, the segment remained resilient. As current market conditions in the region have impacted the advertising market, AVOD has experienced a temporary impact. We expect that, as market conditions improve, AVOD will recover and return to its growth trajectory.
International momentum remains strong, driven by audiences outside MENA, underscoring the Group’s expanding global footprint, with international subscribers’ revenues increasing 12% year-on-year. We continue to see attractive opportunities across international markets, driven by localized content, targeted market strategies and strategic partnerships, including our partnership with Ooredoo in Tunisia. At the same time, we continue to invest in the capabilities that enable us to scale efficiently, including payment security, automation and user experience enhancements.
How did MBC SHAHID’s investments in Ramadan content and original productions affect profit margins during the first half? Do you expect content spending to moderate in the second half of the year?
Our content investments during Ramadan are part of our broader programming strategy and are planned based on seasonality and audience demand. While Ramadan is a key period for content activity, we do not expect a material year-on-year change in overall content investment levels, as we continue to invest in compelling content throughout the year to serve audiences across different seasons and markets.
Content remains at the heart of our strategy and continued to be a primary driver of audience engagement during 1H 2026. Following a strong Ramadan season, we maintained momentum through the second quarter with a diverse range of drama, entertainment, Arabic adaptations, and locally produced Originals that continued to resonate with audiences across the region.
MBC SHAHID’s content strategy delivered strong results, with Layl emerging as the leading title, highlighting the continued strength of our Arabic storytelling capabilities. The Voice Kids also delivered strong audience engagement, while MBC SHAHID’s broad range of programming continued to attract viewers across Pan-Arab, Egyptian, GCC, and Turkish content. During the period, we launched six MBC SHAHID Originals, with Hofrat Jahannam, Forsan Greih Season 2, and Mercato each attracting more than one million viewers. A further nine Originals are planned for the second half of the year.
Going forward, the Group’s priority will be to accelerate MBC SHAHID’s top-line growth through disciplined strategic investment in premium Arabic content, product and platform enhancements, strategic B2B partnerships and targeted international expansion. Accordingly, we will retain flexibility to reinvest in attractive growth opportunities rather than prioritising further near-term margin expansion, while maintaining a disciplined approach to monetisation and capital allocation.
How does the group plan to balance investment in production capabilities with changing audience behaviours to maintain growth and competitiveness in an increasingly competitive media landscape?
Consumer behaviour continues to evolve rapidly, with audiences engaging across a wider range of formats, platforms and experiences. The shift towards short-form video, vertical content, user-generated formats and emerging categories such as micro dramas highlights the need for us to remain agile and continue adapting how we develop, package and distribute content. Our priority is to ensure we continue meeting audiences wherever they choose to engage, while maintaining the quality and relevance that define our offering.
Across our markets, we see significant opportunities to build on our existing strengths while responding to the broader transformation taking place across the region’s media sector. Saudi Arabia’s investment in building a world-class ecosystem for content creation and entertainment is creating new opportunities for growth, attracting international productions and supporting the development of local talent and stories with global potential.
The continued expansion of Al Narjis is an important part of this journey for us, strengthening our production capabilities and providing the infrastructure needed to support a growing content slate. With Studios 1, 2 and 3 operational, alongside the introduction of a new in-house Control Room during Q2, we are enhancing our ability to deliver a broader range of productions with greater efficiency, flexibility and operational control.
Looking ahead, our focus remains on combining our regional expertise, production capabilities and understanding of audiences to create content that resonates locally while competing on a global stage.
Looking ahead, what are your priorities for the group in the coming period?
We remain focused on disciplined execution, optimizing our cost base and selectively investing in content and platforms that strengthen our long-term competitive positioning and support sustainable growth.
At the same time, we are strengthening the business through greater use of data and AI, improved monetisation and strategic capital allocation, enhancing the way we create, distribute and monetise content while improving scalability, productivity and the user experience. These investments support our strategic priorities of transforming our broadcasting business, strengthening MBC SHAHID’s leadership across both SVOD and AVOD, reinforcing our leadership in content and audiences, and pursuing selective expansion while continuing to drive operational excellence.
