MBC Group announces the signing of an agreement between MBC FZ LLC (a wholly owned UAE subsidiary of the Group) and MBC Media Solutions Limited (a Saudi company) for the purpose of selling airtime and exclusive advertising representation in the Ki...

MBC GROUP

4072.SA

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item	clarification
introduction	MBC Free Zone LLC (“MBC Free Zone”), a wholly owned subsidiary of MBC Group (“the Company”), has contracted with MBC Media Solutions (“MMS Saudi”), which the Company indirectly owns 60%, for the exclusive advertising representation to market and sell advertisements on MBC’s television and radio channels and digital platforms in the Kingdom of Saudi Arabia.
Award announcement date	1446-02-30 corresponding to 2024-09-03
Subject of the contract	Exclusive representation agreement to provide advertising services.
The party with whom the contract was signed	MBC Media Solutions Limited.
Contract signing date	1446-02-30 corresponding to 2024-09-03
Contract value	Sharing a percentage of the value of financial revenues between the two parties, resulting from the sale of advertising airtime, sponsorship or other advertising services on MBC’s television and radio channels and digital platforms, in accordance with the terms and conditions of the agreement, in addition to the revenues resulting from extending the airtime sale agreement for a period of three months.
Contract Details	Under the agreement between MBC Free Zone and MMS Saudi Arabia, MMS Saudi Arabia has been appointed as the exclusive representative of MBC Free Zone to market and sell advertisements on MBC TV and radio channels and its digital platforms in the Kingdom of Saudi Arabia in return for a percentage of the value of the financial revenues in accordance with the terms and conditions of the agreement. The agreement also included an extension of the airtime sales agreement for advertising, which was previously concluded between the two parties in October 2023 (the “Airtime Sales Agreement”), for an additional period of three months ending on March 31, 2024 in accordance with the terms and conditions of the Airtime Sales Agreement.
Contract duration	The term of the agreement is three years, starting from January 1, 2024 and ending on December 31, 2026.
Financial impact and the period over which it will be reflected	The contract is expected to have a positive impact starting from fiscal year 2024.
Related Parties	MBC Free Zone is a wholly owned UAE subsidiary of the Company and has entered into the above mentioned agreement with MMS Saudi Arabia (a Saudi related party company indirectly owned by the Company 60%).
Additional information	The company confirms that the agreement was made within the context of normal business and did not include any preferential benefits.

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