New Risk • May 12
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 7.1% Last year net profit margin: 10% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.1% net profit margin). Reported Earnings • May 12
First quarter 2026 earnings released: EPS: ر.س0.60 (vs ر.س0.70 in 1Q 2025) First quarter 2026 results: EPS: ر.س0.60 (down from ر.س0.70 in 1Q 2025). Revenue: ر.س1.58b (down 23% from 1Q 2025). Net income: ر.س198.0m (down 15% from 1Q 2025). Profit margin: 13% (up from 11% in 1Q 2025). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Media industry in Asia. New Risk • Apr 05
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 66% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Large one-off items impacting financial results. Reported Earnings • Mar 17
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: ر.س1.15 (down from ر.س1.20 in FY 2024). Revenue: ر.س5.39b (up 29% from FY 2024). Net income: ر.س382.5m (down 4.4% from FY 2024). Profit margin: 7.1% (down from 9.6% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is forecast to grow 3.6% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Media industry in Asia. New Risk • Mar 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (32% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). Buy Or Sell Opportunity • Feb 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.3% to ر.س32.32. The fair value is estimated to be ر.س41.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has declined by 145%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ر.س33.34, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Media industry in Asia. Total loss to shareholders of 40% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ر.س41.06 per share. Major Estimate Revision • Jan 16
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ر.س5.04b to ر.س4.87b. EPS estimate also fell from ر.س1.33 per share to ر.س1.18 per share. Net income forecast to shrink 12% next year vs 17% growth forecast for Media industry in Saudi Arabia . Consensus price target down from ر.س49.30 to ر.س44.80. Share price was steady at ر.س28.42 over the past week. Buy Or Sell Opportunity • Dec 17
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at ر.س32.02. The fair value is estimated to be ر.س40.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has declined by 145%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Buy Or Sell Opportunity • Nov 24
Now 20% undervalued Over the last 90 days, the stock has risen 3.8% to ر.س32.16. The fair value is estimated to be ر.س40.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has declined by 145%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: ر.س0.06 (vs ر.س0.027 in 3Q 2024) Third quarter 2025 results: EPS: ر.س0.06 (up from ر.س0.027 in 3Q 2024). Revenue: ر.س810.0m (up 7.4% from 3Q 2024). Net income: ر.س13.8m (up 53% from 3Q 2024). Profit margin: 1.7% (up from 1.2% in 3Q 2024). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Media industry in Asia. Buy Or Sell Opportunity • Nov 05
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at ر.س32.14. The fair value is estimated to be ر.س40.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.5% over the last year. Earnings per share has declined by 23%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 46% in the next 2 years. Major Estimate Revision • Sep 30
Consensus EPS estimates increase by 16% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ر.س1.15 to ر.س1.33. Revenue forecast steady at ر.س5.04b. Net income forecast to grow 6.7% next year vs 25% growth forecast for Media industry in Saudi Arabia. Consensus price target of ر.س49.30 unchanged from last update. Share price was steady at ر.س35.78 over the past week. Price Target Changed • Sep 22
Price target decreased by 10.0% to ر.س50.87 Down from ر.س56.50, the current price target is an average from 3 analysts. New target price is 44% above last closing price of ر.س35.44. The company is forecast to post earnings per share of ر.س1.15 for next year compared to ر.س1.20 last year. Ankündigung • Sep 18
Public Investment Fund completed the acquisition of 54% stake in MBC Group (SASE:4072) from Istedamah Holding Company. Public Investment Fund has signed a binding share sale and purchase agreement to acquire 54% stake in MBC Group (SASE:4072) from Istedamah Holding Company for SAR 7.5 billion on November 1, 2024. Pursuant to the SPA, Istedamah will sell its entire stake in the Company, amounting to 180 million shares, which represents 54% of the entire share capital of the Company to PIF, through a private transaction for an aggregate value of SAR 7,469 Million for the Sale Shares, at a price of SAR 41.60 per share (the “Transaction”). Following Completion, PIF will own 54% of the Company’s entire share capital.
The completion of the Transaction is subject to a number of conditions, including obtaining the necessary regulatory approvals and non-objections that might be required from the relevant entities.
Public Investment Fund completed the acquisition of 54% stake in MBC Group (SASE:4072) from Istedamah Holding Company on September 18, 2025. Completion of the Transaction has occurred following, among other things, the receipt of all necessary approvals and non-objections required from the relevant entities. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ر.س32.20, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 18x in the Media industry in Asia. Total loss to shareholders of 28% over the past year. Reported Earnings • Aug 20
Second quarter 2025 earnings released: EPS: ر.س0.22 (vs ر.س0.31 in 2Q 2024) Second quarter 2025 results: EPS: ر.س0.22 (down from ر.س0.31 in 2Q 2024). Revenue: ر.س985.0m (up 2.5% from 2Q 2024). Net income: ر.س72.5m (down 29% from 2Q 2024). Profit margin: 7.4% (down from 11% in 2Q 2024). Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Media industry in Asia. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ر.س35.65, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Media industry in Asia. Total loss to shareholders of 18% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ر.س47.21 per share. Buy Or Sell Opportunity • Jun 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 22% to ر.س36.95. The fair value is estimated to be ر.س47.21, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 75% over the last year. Earnings per share has grown by 355%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. Ankündigung • Jun 05
MBC Group, Annual General Meeting, Jun 29, 2025 MBC Group, Annual General Meeting, Jun 29, 2025, at 20:15 Arab Standard Time. Location: riyadh Saudi Arabia Major Estimate Revision • May 19
Consensus EPS estimates increase by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from ر.س4.88b to ر.س5.14b. EPS estimate increased from ر.س1.09 to ر.س1.33 per share. Net income forecast to shrink 15% next year vs 24% growth forecast for Media industry in Saudi Arabia . Consensus price target broadly unchanged at ر.س56.83. Share price fell 3.5% to ر.س42.30 over the past week. Reported Earnings • May 13
First quarter 2025 earnings released: EPS: ر.س0.70 (vs ر.س0.33 in 1Q 2024) First quarter 2025 results: EPS: ر.س0.70 (up from ر.س0.33 in 1Q 2024). Revenue: ر.س2.04b (up 66% from 1Q 2024). Net income: ر.س263.5m (up 141% from 1Q 2024). Profit margin: 13% (up from 8.9% in 1Q 2024). Revenue is forecast to grow 3.8% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Media industry in Asia. New Risk • Apr 18
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 117% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Ankündigung • Apr 09
MBC Group Announces CEO Changes MBC Group announced Samuel James Kilion Barnett resigned from his position as the CEO of the company, effective on 30 April 2025. The board appointed Michael John Sneesby as the new CEO, taking over his role on 1 May, 2025. Sneesby most recently served as CEO of Nine Entertainment from 2021 to 2024 and was the CEO and founder of Stan, which he built into one of the most successful streaming platforms. Prior to that, he was the founder and CEO of Stan, which he built into one of the most successful streaming platforms. He also served as CEO of the e-commerce platform Cudo, and as Vice President of IPTV at Intigral. He demonstrated success in applying global technology trends to local markets, with a strong focus on digital innovation, media growth, and strategic partnerships. In January 2024, Barnett oversaw MBC Group's initial public offering (IPO) on the Saudi Stock Market and led the company through growth in value since its listing while optimizing commercial revenues. Mr. Michael John Sneesby has demonstrated success in applying global technology trends to local markets, with a strong focus on digital innovation, media growth, and strategic partnerships. He has led large-scale commercial, studio, and sports rights deals. Mr. Michael John Sneesby holds a Master of Business Administration from Macquarie University - Australia and a Bachelor of Engineering in Electrical Engineering from the University of Wollongong - Australia. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ر.س38.75, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 18x in the Media industry in Asia. Total loss to shareholders of 32% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ر.س44.21 per share. Reported Earnings • Mar 29
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: ر.س1.20 (up from ر.س0.26 in FY 2023). Revenue: ر.س4.20b (up 65% from FY 2023). Net income: ر.س426.1m (up ر.س397.6m from FY 2023). Profit margin: 10% (up from 1.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Media industry in Asia. Major Estimate Revision • Nov 28
Consensus EPS estimates increase by 59% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ر.س0.964 to ر.س1.53. Revenue forecast steady at ر.س4.39b. Net income forecast to grow 73% next year vs 24% growth forecast for Media industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س55.50. Share price rose 14% to ر.س52.60 over the past week. Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ر.س51.40, the stock trades at a forward P/E ratio of 44x. Average forward P/E is 15x in the Media industry in Asia. Reported Earnings • Nov 14
Third quarter 2024 earnings released: EPS: ر.س0.027 (vs ر.س0.019 in 3Q 2023) Third quarter 2024 results: EPS: ر.س0.027 (up from ر.س0.019 in 3Q 2023). Revenue: ر.س754.2m (up 17% from 3Q 2023). Net income: ر.س9.06m (up 57% from 3Q 2023). Profit margin: 1.2% (up from 0.9% in 3Q 2023). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Media industry in Asia. Ankündigung • Nov 04
Public Investment Fund has signed a binding share sale and purchase agreement to acquire 54% stake in MBC Group (SASE:4072) from Istedamah Holding Company for SAR 7.5 billion. Public Investment Fund has signed a binding share sale and purchase agreement to acquire 54% stake in MBC Group (SASE:4072) from Istedamah Holding Company for SAR 7.5 billion on November 1, 2024. Pursuant to the SPA, Istedamah will sell its entire stake in the Company, amounting to one hundred seventy-nine million five hundred fifty thousand (179,550,000) shares (the “Sale Shares”), which represents (54%) of the entire share capital of the Company to PIF, through a private transaction for an aggregate value of SAR 7,469 Million for the Sale Shares, at a price of SAR 41.60 per share (the “Transaction”). Following Completion, PIF will own (54%) of the Company’s entire share capital.
The completion of the Transaction is subject to a number of conditions, including obtaining the necessary regulatory approvals and non-objections that might be required from the relevant entities (the “Completion”). The Transaction will be executed as a negotiated deal in accordance with the Saudi Exchange’s (Tadawul) Trading and Membership Procedures at Completion of the Transaction. Ankündigung • Oct 22
An undisclosed group of investors acquired 4.90% stake in Arabian Contracting Services Company (SASE:4071) from MBC Group (SASE:4072) on October 20, 2024. An undisclosed group of investors acquired 4.90% stake in Arabian Contracting Services Company (SASE:4071) from MBC Group (SASE:4072) for SAR 416.5 million on October 20, 2024. The sale comprising 2,450,000 shares, which represent 4.9% of AlArabia's share capital, to a number of investors. This decision comes as a strategic financial step taken by MBC Group to meet its financial obligations and strengthen its financial position, as stated in their Tadawul announcement and prospectus of MBC Group. The Group will retain a 15.1% stake in AlArabia as an investment in an associated company and these remaining shares held by MBC Group will be subject to a 6 month contractual lock-up undertaking starting from the transaction execution date.
An undisclosed group of investors completed the acquisition of 4.90% stake in Arabian Contracting Services Company (SASE:4071) from MBC Group (SASE:4072) on October 20, 2024. Major Estimate Revision • Sep 10
Consensus EPS estimates increase by 62% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ر.س4.23b to ر.س4.37b. EPS estimate increased from ر.س0.597 to ر.س0.964 per share. Net income forecast to grow 89% next year vs 25% growth forecast for Media industry in Saudi Arabia. Consensus price target up from ر.س51.17 to ر.س54.50. Share price rose 2.5% to ر.س45.20 over the past week. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: ر.س0.31 (vs ر.س463 in 2Q 2023) Second quarter 2024 results: EPS: ر.س0.31. Revenue: ر.س961.0m (up 1.7% from 2Q 2023). Net income: ر.س102.6m (up 343% from 2Q 2023). Profit margin: 11% (up from 2.4% in 2Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Media industry in Asia. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ر.س44.20, the stock trades at a forward P/E ratio of 54x. Average forward P/E is 15x in the Media industry in Asia. Simply Wall St's valuation model estimates the intrinsic value at ر.س19.16 per share. Major Estimate Revision • Aug 16
Consensus EPS estimates increase by 33% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ر.س4.13b to ر.س4.23b. EPS estimate increased from ر.س0.448 to ر.س0.597 per share. Net income forecast to grow 30% next year vs 25% growth forecast for Media industry in Saudi Arabia. Consensus price target up from ر.س48.50 to ر.س51.17. Share price rose 15% to ر.س44.20 over the past week. Ankündigung • Jun 08
MBC Group, Annual General Meeting, Jun 26, 2024 MBC Group, Annual General Meeting, Jun 26, 2024, at 20:00 Arab Standard Time. Location: riyadh Saudi Arabia Major Estimate Revision • May 23
Consensus EPS estimates increase by 22% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ر.س0.367 to ر.س0.449. Revenue forecast unchanged at ر.س4.17b. Net income forecast to grow 422% next year vs 31% growth forecast for Media industry in Saudi Arabia. Consensus price target of ر.س48.50 unchanged from last update. Share price fell 6.3% to ر.س50.20 over the past week. Major Estimate Revision • Apr 15
Consensus EPS estimates increase by 32% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ر.س4.04b to ر.س4.11b. EPS estimate increased from ر.س0.279 to ر.س0.367 per share. Net income forecast to grow 328% next year vs 26% growth forecast for Media industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س48.50. Share price was steady at ر.س57.20 over the past week. Board Change • Jan 08
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. No experienced directors. No highly experienced directors. Non-Executive Non Independent Nasser Manahi bin Al Baqami is the most experienced director on the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors.