The Saudi Research and Media Group (SRMG) announced its financial results for 2025, reporting revenues of 2.673 billion riyals (approximately 712.8 million USD), down from 3.263 billion riyals (around 870.2 million USD) in the previous year. The group also recorded a net loss of 366.28 million riyals, in stark contrast to a net profit of 201.69 million riyals in 2024.
The results for 2025 reflect clear pressures on the revenues of several sectors within the group, particularly in the printing and packaging sector, alongside market changes that impacted the volume of business in some traditional activities. Conversely, the publishing and visual content sector performed relatively better, driven by the group's share of revenues from Thamanyah Publishing and Distribution through projects related to the transmission and broadcasting of Saudi championships.
Details of the Financial Results
The results were affected by a decline in gross profit due to reduced revenues from certain operational sectors, as well as an increase in the provision for credit losses in trade receivables. Additionally, a decrease in the value of goodwill and property, plant, and equipment totaling 132.4 million riyals was recorded, linked to the printing and packaging sector. Furthermore, administrative and marketing expenses associated with new projects, including the transmission and broadcasting of Saudi championships under Thamanyah Publishing and Distribution, have risen as part of the group's strategy to develop its media and digital portfolio.
In this context, Jumana Al-Rashed, the CEO of the group, stated that this year's results reflect the reality of the transformation taking place in the media sector and highlight the phase the group is undergoing in reshaping its business portfolio. She noted that the group has reduced operational costs by 315 million riyals since 2023 while maintaining strong organic digital reach across its platforms, showcasing the digital transformation implemented in recent times.
Background & Context
The Saudi Research and Media Group aims to continue its strategy of investing in growth areas, which include media and digital companies, platforms, and assets. Al-Rashed emphasized that the group will continue to implement its operational and strategic priorities, including enhancing efficiency, improving the business structure, reinforcing financial discipline, and investing in companies, content, and projects that support revenue diversification.
These results come at a time when the media sector is experiencing significant changes, as many companies are moving towards digital transformation and expanding visual content, increasing competitiveness in the market. Additionally, global economic challenges are impacting the performance of many companies in this sector.
Impact & Consequences
The financial results of the Saudi Research and Media Group serve as an indicator of the challenges faced by media companies amid current economic conditions. The decline in revenues and net loss suggest a need to reassess current strategies and adopt new business models that align with changes in consumer behavior.
These results are expected to influence the group's future investments, necessitating a focus on innovation and delivering content that attracts audiences, alongside improving operational efficiency to reduce costs. The shift towards digital transformation will remain a central theme in growth strategies.
Regional Significance
The Saudi Research and Media Group is one of the prominent media companies in the region, and its performance decline may impact the overall media market. With increasing competition from digital media platforms, companies need to innovate and adapt to rapid market changes.
The challenges faced by the group may also reflect the overall state of the media sector in the Arab world, where traditional companies are under increasing pressure to confront digital transformations. This requires companies to be more agile and responsive to changes in consumer behavior and needs.
In conclusion, the results of the Saudi Research and Media Group reflect the challenges it faces amid current economic conditions, necessitating a reassessment of its strategies and the adoption of new business models that align with rapid market changes.