ALKHOBAR, 17 April 2006 — Saudi Research & Marketing Group (SRMG) makes an annual revenue of SR850 million from advertising, says Dr. Azzam Al-Dakhil, deputy vice president of SRMG and managing director of Saudi Research & Publishing Company (SRPC).
“This figure represents 32 percent of the total advertising revenues of the print media in the Arab world,” he told a press conference at Gulf Meridien, which was held on the occasion of the group’s initial public offering (IPO).
The IPO, the first by a media organization in the Arab world, drew more than SR1.8 billion in four days. According to Samba Financial Group, which is managing the IPO, the floatation was oversubscribed by 170 percent by last Tuesday. The company is offering 24 million shares at the rate of SR46.
Underlining the company’s international reputation as a leading media organization, Al-Dakhil said it publishes 15 newspapers and magazines, adding that seven million people around the world read these publications. SRPC publications are distributed through 30,000 outlets and use 2.5 billion pages of paper annually.
“Our group is eyeing to achieve big progress and profit this year and the coming years within the framework of a clear strategic plan,” Al-Dakhil said, adding that it was maintaining a high degree of transparency while dealing with shareholders and protecting their rights.
Referring to the group’s diversification program, he said the group had purchased successful ventures such as Hala Press in Riyadh. “We have also established Moutamarat Company along with Dubai Holding,” he added. He disclosed the company’s plan to publish a series of specialized publications.
Dr. Fahd Al-Saeed, director general of Saudi Distribution Company (SDC), a subsidiary of SRMG, described his company as the group’s “ground force.” SDC owns two printing firms in Kuwait and the United Arab Emirates and has over 1,100 employees.
“We distribute about 1.5 million copies of various publications in Saudi Arabia alone through 15,000 outlets in various parts of the country,” Al-Saeed told reporters. The company has 700 vehicles that cover 70,000 kms daily.
Ameen Ghuraib, chief finance officer, spoke about the group’s financial position and its profit-making achievements. “In 2005, we made a profit of SR181 million, nearly four times higher than the profit gained in the previous year,” he pointed out.
Ghuraib said the group’s combined revenues rose from SR780 million in 2003 to SR1.63 billion in 2005, registering a growth of 16 percent. He attributed this growth to an increase in SRMG’s market share and advertisement spending.
During the press conference, Abdul Aziz Kanoo, deputy chairman of Yusuf Bin Ahmed Kanoo, asked whether the group had any plan to open its branches in other Arab countries and target readers in Iran. Al-Dakhil said the company would take decisions on expansion plans after careful studies.
Asked about SRMG’s possible entry into television media, the executive vice president said such a step required a lot of studies due to the presence of a number of satellite channels. However, he said the company’s ambitions are beyond limits.
