| Introduction | MBC FZ-LLC ("MBC FZ"), a subsidiary wholly owned by MBC Group (the "Company"), has entered into an agreement with MBC Media Solutions Limited ("MMS KSA"), an entity that is effectively 60% indirectly owned by the Company, for the purpose of exclusive advertising representation for the marketing and sale of advertising on MBC TV and radio channels and its digital platforms in the Kingdom of Saudi Arabia. |
| Date of Announcement of the Award | 2024-09-03 Corresponding to 1446-02-30 |
| Contract Subject Matter | Exclusive media representation agreement to provide advertising services. |
| The Entity with Which the Contract was Signed | MBC Media Solutions Limited. |
| Date of Signing the Contract | 2024-09-03 Corresponding to 1446-02-30 |
| Contract Value | Sharing a percentage of the revenues between the parties resulting from the sale of advertising airtime, sponsorship or other advertising services on MBC TV and radio channels and digital platforms, in accordance with the terms and conditions of the agreement, in addition to the revenue resulting from the extension of the Airtime Sales Agreement for three months. |
| Contract Details | Under the agreement between MBC FZ and the MMS KSA, MMS KSA has been appointed as MBC FZ's exclusive representative for the marketing and sale of advertising on MBC TV and radio channels and digital platforms in the Kingdom of Saudi Arabia in exchange for sharing a percentage of the revenues in accordance with the terms and conditions of the agreement. The agreement also included an extension of the airtime time sales agreement, previously concluded between the parties in October 2023G ("Airtime Sales Agreement"), for an additional three-month period ending on 31 March 2024G in accordance with the terms and conditions of the Airtime Sales Agreement. |
| Contract Duration | The term of the agreement is three years, effective from 1 January 2024G and ending on 31 December 2026G. |
| Financial Impact and the Relevant Period | It is expected that the agreement will have positive impact starting from the fiscal year 2024G. |
| Related Parties | MBC FZ is a wholly-owned subsidiary of the Company in the UAE, which has signed the above-mentioned agreement with MMS KSA (a Saudi company that is a related party, indirectly owned by the Company by 60%). |
| Additional Information | The Company confirms that the agreement was made in the ordinary course of business and did not include any preferential benefits. |
