Interim report
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REVIEW REPORT FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2025
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REVIEW REPORT FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2025 INDEX PAGE Independent auditor’s review report 1 Interim condensed consolidated statement of financial position 2 Interim condensed consolidated statement of profit or loss 3 Interim condensed consolidated statement of comprehensive income 4 Interim condensed consolidated statement of changes in equity 5 Interim condensed consolidated statement of cash flows 6-7 Notes to the interim condensed consolidated financial statements 8-23
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 8 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS At 30 September 2025 1. CORPORATE INFORMATION Saudi Research and Media Group (the “Company” or the “Parent Company”) is a Saudi joint stock company registered in Riyadh, Kingdom of Saudi Arabia and operates under commercial registration number 1010087772 and unified number 7001443774 dated 29 Rabi Al-Awwal 1421H (corresponding to 1 July 2000) and has a registered branch in Jeddah under sub- commercial registration number 4030061258. The Company’s head office address is Al-Moutamarat District, Makkah Road, P.O. Box 53108, Riyadh 11583, Kingdom of Saudi Arabia. The Company has announced to the shareholders on 20 Ramadan 1442H (corresponding to 2 May 2021) the approval of the Extraordinary General Assembly held on 17 Ramadan 1442H (corresponding to 29 April 2021) to amend Article (2) of the Company's by-laws regarding changing the Company’s name from Saudi Research and Marketing Group to Saudi Research and Media Group, after completion of all legal requirements on 5 Shawwal 1442H (corresponding to 17 May 2021). The Company and its subsidiaries (collectively referred to as the “Group”) are engaged in trading, media, advertising, promotions, distribution, printing and publishing, and public relations, and operate mainly in the Middle East, Europe, and North Africa. These interim condensed consolidated financial statements include the financial position and results of operations of the Company and its domestic and foreign subsidiaries in the schedule below. The following is a list of the subsidiaries incorporated within these interim condensed consolidated financial statements: The Group's percentage of direct and indirect ownership (%) Subsidiaries Country of incorporation and activities Principal activity As at 30 September 2025 As at 31 December 2024 Intellectual Holding Company for Advertisements and Publicity KSA Investment in subsidiaries 100 100 Scientific Works Holding Company KSA Investment in subsidiaries 100 100 Saudi Research and Publishing Company KSA Publishing 100 100 SRMG Media Solutions (formerly “Al- Khaleejiah Advertising and Public Relations Company”) KSA Advertisement and publicity 100 100 Arab Media Company Limited KSA Visual and readable media and advertising services 100 100 Saudi Distribution Company KSA Publishing and distribution 100 100 Moutamarat Company for Exhibitions and Conferences KSA Holding and organizing specialized exhibitions, conferences and forums 100 100 Emirates Printing, Publishing, and Distribution Company Ltd. United Arab Emirates Distribution 100 100 Moroccan Printing and Publishing Company Morocco Printing and publishing 100 100 VOX Asia Productions Limited Pakistan Advertising 100 100 Numu Media Holding Company KSA Management of subsidiaries 100 100 Scene Visual Media Company (formerly “Numu Visual Media Company”) KSA Advertising 100 100 Numu Elmiah Co. (formerly “Educational Bookshop Co”.) KSA Development of educational methods and books trade 100 100 Saudi Specialized Publishing Company KSA Specialized publishing 100 100 Saudi Commercial Company KSA Trading in printing accessories 100 100 Al-Ofoq Management Information System and communication Company KSA Trading in communication equipment and software development 100 100 Character Company Limited KSA Trade 100 100 Taoq Public Relations Company Limited KSA Public relations and communication 100 100 Takanah Public Relations Company Limited (c) KSA Finance and business services 100 100 SRMG Academy limited (formerly: “Numu Training and Consulting Company”) KSA Training and consulting 100 100
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 9 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 1. CORPORATE INFORMATION (continued) The f ollowing is a list of the subsidiaries incorporated within these interim condensed consolidated financial statements (continued): The Group's percentage of direct and indirect ownership (%) Subsidiaries Country of incorporation and activities Principal activity As at 30 September 2025 As at 31 December 2024 Education Concept for Educational and Technical Solutions Company KSA Import, export, and wholesale trade 100 100 Numu Alelaniah for Advertising KSA Visual and readable media and advertising services 100 100 Arab Net Technology Co. Ltd Guernsey Island Internet services 100 100 Al Khaleejiah UK Company Ltd United Kingdom Advertising 100 100 Book Depot for Publishing and Distribution (Ethra’a) Jordan Publishing and Distribution 100 100 Al Nasheron International for Publishing and Distribution Company (formerly “Raff Publishing Company”) (c) KSA Publishing and distribution 100 100 Taoq Media Research Company KSA Research and support 100 100 Asharq News Services Company Limited United Arab Emirates TV broadcasting, radio, and other media platforms 100 100 Content Specialized Media Company United Arab Emirates Specialized publishing 100 100 University Book Shop Company United Arab Emirates Publishing and distribution 100 100 Smart Super Stores Company United Arab Emirates Publishing and distribution 100 100 HH Saudi Research and Marketing Company United Kingdom Publishing and distribution 100 100 Media Investment Company Limited Guernsey Island Rental services 100 100 Al-Majalla Magazine Limited United Kingdom Commercial activities 100 100 Asharq Al Awsat Co. Ltd United Kingdom Main center activities 100 100 IPM Ltd Guernsey Islands Registration, maintenance, and ownership of the Group’s intellectual property 100 100 Sayidaty Products Co. Guernsey Islands Commercial activities 100 100 Sayidaty Limited Company United Kingdom Commercial activities 100 100 Euromena Research Centre Limited (formerly “Satellite Graphics Limited”) United Kingdom Commercial activities 100 100 Media Arabia Company Limited Jersey Commercial activities 100 100 Asharq News Services Company Limited KSA TV broadcasting, radio, and platforms 100 100 Asharq TV Company KSA Television Broadcasting and Radio and Forums 100 100 The News Hub Limited United Kingdom News wire 100 100 The News Hub Limited KSA News wire 100 100 Raff Publishing LLC KSA Publishing and distribution 100 100 Manga Arabia LLC KSA Publishing and distribution 100 100 SRMG Godo Kaisha Japan Publishing 100 100 Manga International Godo Kaisha Japan Publishing 100 100 Saudi Printing and Packaging Company (a),(f) KSA Printing, packaging, and plastic industries 68.8 70 Argaam Investment and trading Company (b) KSA Publishing and electronic content 51 51 Thmanyah Co. for Publishing and distribution (d) KSA Providing visual content 51 51
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 10 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 1. CORPORATE INFORMATION (continued) (a) The Saudi Printing and Packaging Company (SPPC) owns the following subsidiaries: The Group’s percentage of indirect ownership (%) Subsidiaries Country of incorporation and activities Principal activity As at 30 September 2025 As at 31 December 2024 Al Madinah Al Munawarah for Printing and Publishing Company KSA Printing 68.8 70 Hala Printing company KSA Printing 68.8 70 Future Industrial Investment Company KSA Printing and packaging 68.8 70 Emirates National Factory for Plastic Industries and its Subsidiaries (ENPI) United Arab Emirates Packaging and plastic industries 68.8 70 (b) The Arab Media Company (a subsidiary) owns 51% of the shares in Argaam Investment and Trading Company (Argaam), a limited liability company. Argaam has the following subsidiaries: The Group’s percentage of indirect ownership (%) Subsidiaries Country of incorporation and activities Principal activity As at 30 September 2025 As at 31 December 2024 Danat Free Zone Company United Arab Emirates Publishing and electronic content 51 51 Argaam Media Company Arab Republic of Egypt Publishing and electronic content 51 51 (c) Takanah Public Relations Company Limited and Al Nasheron International for Publishing and Distribution Company own 100% of the shares in Global Media Company and its subsidiaries, based in the United Kingdom. (d) Thmanyah, one of Group subsidiaries has been awarded the exclusive broadcast rights for the Custodian of the Two Holy Mosques Cup, the Roshn Saudi League, the Saudi Super Cup and the Saudi 1st Division League (“Yelo”) in the Middle East and North Africa region from the 2025/2026 season to the 2030/2031 season. The licensing contract for the tournaments between Thmanyah and the Saudi Professional League are still under finalization. (e) A partnership agreement has been established between SRMG and Qvest Group to form a joint venture aimed at enhancing media, production, and technology services in Saudi Arabia. The focus areas include foresight and innovation, change management, cloud adoption, data and analytics, media supply chain technologies, and content distribution. The project operations officially commenced in September 2025. SRMG holds a 33% ownership share in the joint venture. (f) During Q3, Group has sold 1.2% of its shares in Saudi Printing and Packaging Company as part of SPPC ’s capital restructuring plan (Alinma bank loan) for a consideration of 8.5 million which resulted in surplus of 6.1 million. 2. BASIS OF PREPARATION The interim condensed consolidated financial statements for the nine months ended 30 September 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting that is endorsed in the Kingdom of Saudi Arabia by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”). The Group has prepared the interim condensed consolidated financial statements on the basis that it will continue to operate as a going concern. The Management considers that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the date of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual consolidated financial statements as at 31 December 2024. The interim condensed consolidated financial statements are prepared under the historical cost convention, except for the following: • Financial assets at fair value through other comprehensive income (FVOCI) are measured at fair value; • Derivative financial instruments are measured at fair value; and • Defined employees’ benefits liabilities are recognized at the present value of future obligations using the Projected Unit Credit Method.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 11 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 2. BASIS OF PREPARATION (continued) Functional and presentation currency The interim condensed consolidated financial statements are presented in Saudi Riyal ( ), which is the Company’s functional currency and the Group’s presentation currency. All amounts are shown in full unless otherwise indicated. 3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS The preparation of the Group’s interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The significant judgements exercised by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual consolidated financial statements. 4. MATERIAL ACCOUNTING POLICY INFORMATION The material accounting policies applied in these interim condensed consolidated financial statements are the same as those applied in the Group’s annual consolidated financial statements as at and for the year ended 31 December 2024 except for the adoption of new standards effective as of 1 January 2025 disclosed below and in note 6 and for the joint venture entered into this period. The Group has presented its share of profit of a joint venture using the equity method under IAS 28 Investments in Associates and Joint Ventures after the line-item ‘operating profits’ IAS 1.82 (c) requires ‘share of the profit or loss of associates and joint ventures accounted for using the equity method’ to be presented in a separate line item on the face of the statement profit or loss. 5. FAIR VALUE MEASUREMENTS A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values for financial assets and liabilities. This includes a team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the Chief Financial Officer. The team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of the standards, including the level in the fair value hierarchy in which the valuations should be classified. Significant valuation issues are reported to the Group’s audit committee. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. - Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety at the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. 6. NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2024, except the adoption of new standards effective as of 1 January 2025. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. 6.1 Lack of exchangeability - Amendments to IAS 21 The amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 12 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 6. NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS (continued) 6.1 Lack of exchangeability - Amendments to IAS 21 (continued) The amendments are effective for annual reporting periods beginning on or after 1 January 2025. When applying the amendments, an entity cannot restate comparative information. The amendments did not have a material impact on the Group’s interim condensed consolidated financial statements. 7. PROPERTY, PLANT AND EQUIPMENT As at 30 September 2025, the cost of property, plant and equipment amounted to 2,434.5 million (31 December 2024: 2,357.5 million) and the accumulated depreciation and impairment as at 30 September 2025 amounted to 1,266.7 million (31 December 2024: 1,176.1 million). During the nine-month period ended 30 September 2025, the Group purchased assets with a cost of 84.1 million (30 September 2024: 98.2 million). Certain property, plant and equipment were placed as collateral against long-term borrowing (note 16). SPPC has also recorded an impairment of 5.0 million during the nine-month ended 30 September 2025 (30 September 2024: 30.4 million). Capital commitments The capital commitments of the Group pertaining to purchase of property, plant and equipment amounted to 108.0 million as at 30 September 2025 (31 December 2024: 204.0 million). These are expected to be delivered in 2026. 8. RIGHT-OF-USE ASSETS During the nine-month period ended 30 September 2025, the Group’s additions to right-of-use assets amounted to 0.4 million (30 September 2024: 169.0 million). 9. INTANGIBLE ASSETS AND GOODWILL The details of intangible assets and goodwill are as follows: As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Goodwill (*) 304,745,066 304,745,066 Visual content project, websites, and copyrights 332,250,996 398,992,579 Mastheads (*) 172,126,350 172,126,350 Computer software 17,535,327 25,555,079 Trade names 5,176,400 6,146,975 Projects in progress 45,037,870 8,524,689 876,872,009 916,090,738 (*) Sensitivity to changes in assumptions With regard to the assessment of value-in-use, there are no significant changes to the key assumptions, or the sensitivity information disclosed in the annual consolidated financial statements for the year ended 31 December 2024. 10. INVESTMENT PROPERTIES As at 30 September 2025, the Group holds investment properties with carrying value of 5.9 million (31 December 2024: 6.2 million) which has a fair value of 11.3 million as at 31 December 2024.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 13 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 11. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVOCI) This mainly includes investment in fund in the Kingdom of Saudi Arabia regulated by the Saudi Capital Market Law and its executive regulations, a private equity fund and shares in both a quoted and an unquoted company. Financial assets at FVOCI represents the investments which the Group has the intention to hold for the long term for strategic purposes. In accordance with IFRS 9, the Group has initially recognized them as financial assets at FVOCI. The movement of financial assets at FVOCI is as follows: For the nine-month period ended 30 September 2025 (Unaudited) For the year ended 31 December 2024 (Audited) At 1 January 1,245,541,883 1,214,442,526 Additions 10,000,000 107,024,925 Fund management fees (1,888,798) (7,671,234) Changes in fair value 31,319,426 (68,254,334) 1,284,972,511 1,245,541,883 In accordance with the terms and conditions of the investment fund with fair value of 1.28 billion (31 December 2024: 1.23 billion), the control of this investment fund rests with the fund manager. 12. CASH AND CASH EQUIVALENTS As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Cash at banks and on hand 171,159,063 178,825,575 Cash at banks – restricted accounts (*) 9,792,852 9,792,852 Cash at bank – term deposits 480,000,000 350,000,000 660,951,915 538,618,427 For the purposes of the interim condensed consolidated statement of cash flows, the gross cash at banks and cash on hand consist of the following: As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Total cash and cash equivalents 660,951,915 538,618,427 Less: restricted accounts (*) (9,792,852) )9,792,852 ( 651,159,063 528,825,575 *Restricted bank accounts represent deposit pledged against a loan obtained by the Saudi Printing and Packaging Company (a subsidiary). 13. INVENTORIES The provision for slow-moving inventories as at 30 September 2025 amounted to 27.6 million (31 December 2024: 30.3 million) was in line with the policy adopted by the Group. 14. SHARE CAPITAL The Company’s share capital amounting to 800 million as of 30 September 2025 and 31 December 2024 is divided into 80 million shares of 10 each.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 14 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 15. DERIVATIVE FINANCIAL INSTRUMENTS The fair value of derivative financial instruments as at the reporting date was as follows: As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Derivatives not designated as hedging instruments Profit rate swaps - 3,298,256 The Group uses derivative financial instruments mainly, profit rate swaps. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Accordingly, the Group has recognized asset of 3.3 million as a financial asset during the year ended 31 December 2024. During the period ended 30 September 2025 the derivative financial instruments were terminated, resulting in a loss of 0.8 million recognized in the interim condensed consolidated statement of profit or loss for the period. 16. BORROWINGS AND MURABAHA The Group has signed several financing agreements and banking facilities with a number of local and foreign banks, which include borrowings and Murabaha, credit facilities, letters of credit and letters of guarantee, amounting to 1.7 billion as at 30 September 2025 (31 December 2024: 1.7 billion). Of the facilities available to the Group, as at 30 September 2025, the balance outstanding amounted to 610.4 million (31 December 2024: 653.1 million). SPPC and its subsidiaries (“SPPC”) have signed several financing agreements and banking facilities with a number of local and foreign banks, which include loans and Murabaha, credit facilities, letters of credit and letter of guarantee, on different periods subject to renewal. The credit limit for total facilities was 625.9 million as at 30 September 2025 (31 December 2024: 699.9 million). These agreements are subject to the terms and conditions of banking facilities that apply to all types of facilities provided by banks to their clients. The purpose of these facilities is to finance the activity, working capital, investments and capital expenditures as well as to finance the import of raw materials and equipment related to SPPC’s activities and projects. These facilities are subject to interest charges according to the relevant agreements, ranging from 1.65% to 3.5% per annum in addition to SAIBOR or EIBOR as applicable. The loan agreements contain covenants, mainly relating to certain current ratio, leverage ratio, total debt to equity ratio, and others. Under the terms of these agreements, the banks have the right to demand immediate repayment of the loans if any of the covenants are not met. SPPC didn't comply with certain loans and certain covenants as at 31 December 2024 and on 30 September 2025. Under these agreements, SPPC and its subsidiaries provided a number of guarantees to cover the full value of the financing which consist of the following: - Promissory notes with the value of the available facilities. - An insurance policy which grants the bank the right to be first beneficiary for the amount equal to the value of the facility. - Restricted bank accounts amounting to 9.8 million (31 December 2024: 9.8 million) (note 12). - Corporate Guarantee from Flexible Packaging Company Limited, Future Plus Company and Taibah Printing and Packaging Company Limited. - Funding bank account is required with amount to be held of (1 quarterly fixed installment + variable interest rate) to designated non-checking account with the bank. - Legal Mortgage over land and property of 137.1 million. (31 December 2024: 137.1 million) - Mortgage of Machineries worth 144.0 million. (31 December 2024: 144.0 million). - Assignment of all risk Islamic Insurance policy over mortgaged properties, inventory, and purchased machines. - Pledge of stock/inventories in favor of the bank until full and final repayment of the total facilities. - Hypothecation over inventories of ENPI amounting to the carrying value of the inventories at any given point in time. - Hypothecation over ENPI receivables on pari passu basis between the lenders. - Cross corporate guarantees of ENPI Companies for 217.1 million (31 December 2024: 298.7 million). - Comfort letter from the shareholders of ENPI amounting to the full working capital facilities of 217.1 million (31 December 2024: 298.7 million).
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 15 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 16. BORROWINGS AND MURABAHA (continued) SPPC obtained the facility limit of 101.9 million in January 2021 for the new capital expenditure with the moratorium period of 18 months. Against which 8.9 million is utilized against this facility as of 31 December 2023. In October 2022, the same was renewed with the limit 91.7 million for the period of 15 months after the drawdown of 8.9 million. In February 2023, limit is reduced to 76.4 million. In 2024, an additional drawdown of 14.7 million was made, and the capital expenditure facility has since expired. This borrowing is secured against mortgage of financed assets. IRS was terminated during the period (note 15). As at 30 September 2025, the utilized balance amounted to 610.4 million (31 December 2024: 653.1 million). The following is an analysis of the borrowings and Murabaha transactions of the Group: As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Long-term borrowing* 251,076,737 259,084,543 Short-term borrowing 339,057,953 375,109,639 Bank overdrafts 15,292,830 16,818,659 Accrued finance costs 4,991,217 2,078,020 Total borrowings and Murabaha 610,418,737 653,090,861 Less: Current portion (485,025,246) (497,878,818) Non-current portion 125,393,491 155,212,043 * The long-term borrowings include current portion of borrowings which is reclassified into current portion due to breach of certain financial covenants. The following is the movement in the balance of borrowings and Murabaha: For the nine-month period ended 30 September 2025 (Unaudited) For the year ended 31 December 2024 (Audited) At 1 January 653,090,861 773,413,292 Proceeds from borrowings 899,353,790 2,188,112,297 Repayment of borrowings (944,939,111) (2,305,945,080) Finance costs 37,007,111 60,223,207 Paid finance costs (34,093,914) (62,712,855) 610,418,737 653,090,861 17. ZAKAT AND INCOME TAX Zakat and income tax assessments for the “Parent Company and its wholly owned subsidiaries” Provision for zakat and income tax is recognized and provided within the interim condensed consolidated statement of profit or loss. Zakat returns of the Company and its wholly owned subsidiaries are submitted to the Zakat, Tax and Customs Authority (ZATCA) based on the standalone financial statements prepared for zakat purposes up to 2006. Other non -wholly owned subsidiaries had filed their zakat returns separately. During the year 2007, the Group had obtained the approval of ZATCA on filing a consolidated zakat return for the Company and its wholly owned subsidiaries. The Company and its wholly owned subsidiaries have filed the zakat returns to ZATCA for the years from 2007 through 2024. The Company and its wholly owned subsidiaries’ returns have been finalized, settled or closed up to the year 2019. Status for the years from 2020 to 2024 The Company and its wholly owned subsidiaries’ consolidated zakat returns for the years from 2020 through 2023 are currently under review by the ZATCA. The final assessments for these years are awaited. while for the year 2024 the return has been filed and still pending with ZATCA for review.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 16 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 17. ZAKAT AND INCOME TAX (continued) Zakat and income tax for “not-wholly-owned subsidiaries” a. SPPC Zakat provision is estimated and charged to the interim condensed consolidated statement of profit or loss. SPPC submitted zakat returns for all years up to 2024. As of September 30, 2025, the status of the Zakat assessments remains unchanged from what was reported in the Group's annual consolidated financial statements for the year ending December 31, 2024, except for the years specifically noted below. SPPC reached a settlement with ZATCA for zakat assessments covering the years 2005 to 2008, 2015, 2016, 2018, 2019, and 2020, with a total liability of 6.8 million to be paid in 12 monthly installments. Zakat payments previously made for 2019 and 2020 were offset against dues for earlier years as part of the final assessment. b. Argaam Investment Trading Company Zakat and income tax returns have been filed to ZATCA till the year 2024. No zakat provisions accrued to Argaam Investment Trading Company for the years from 2019 to 2021 because the zakat base is negative. The Company has not been subject to any Zakat examination up to the date of these interim condensed consolidated financial statements. c. Thmanyah for Publishing and Distribution Company: Zakat returns have been filed to ZATCA up to the year ended 31 December 2024. Income tax: Foreign subsidiaries regularly file tax returns, and the difference between the effective and accounting tax rate is deemed insignificant. UAE Corporate Tax Law SPPC is loss making and does not have any current tax, further the SPPC’s management has recognised an additional deferred tax asset on the loss for the period in the interim condensed consolidated financial statements amounting to nil (30 September 2024: 1,816,512) Movement in Group’s Zakat and income tax provision is as follows: For the nine-month period ended 30 September 2025 (Unaudited) For the year ended 31 December 2024 (Audited) Zakat Income tax Total Zakat Income tax Total At 1 January 95,226,433 13,349 95,239,782 105,009,404 326,745 105,336,149 Provision during the period / year 40,425,003 3,865,534 44,290,537 34,376,475 - 34,376,475 Foreign currency translation adjustments - 158 158 - 3,910 3,910 Paid during the period / year (26,380,150) (4,682,391) (31,062,541) (44,159,446) (1,429,834) (45,589,280) Transferred (from) / to other prepayments (6,170,214) 1,826,572 (4,343,642) - 2,896,464 2,896,464 Reversal of provision during the period / year - - - - (1,783,936) (1,783,936) 103,101,072 1,023,222 104,124,294 95,226,433 13,349 95,239,782
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 17 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 18. EARNINGS PER SHARE Basic and diluted (losses) / earnings per share (EPS) is calculated by dividing the net (loss) / income for the period attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding during the period. Weighted average number of ordinary shares outstanding for the nine-month period ended 30 September 2025 amounted to 80,000,000 shares (nine-month period ended 30 September 2024: 80,000,000 shares). There are no contingent ordinary diluted shares. Diluted (losses) / earnings per share are the same as the basic (losses) / earnings per share as the Group does not have any convertible securities nor diluted instruments to exercise. 19. FINANCIAL INSTRUMENTS FAIR VALUES AND RISK MANAGEMENT 19.1 Financial assets Set out below is an overview of financial assets, held by the Group. As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Financial assets: Financial assets at FVOCI (note 11) 1,284,972,511 1,245,541,883 Trade receivables 1,147,389,674 966,639,798 Cash and cash equivalents (note 12) 660,951,915 538,618,427 Derivative financial instruments (note 15) - 3,298,256 3,093,314,100 2,754,098,364 Non-current 1,285,367,234 1,250,703,935 Current 1,807,946,866 1,503,394,429 3,093,314,100 2,754,098,364 19.2 Financial liabilities Set out below is an overview of financial liabilities, held by the Group. As at 30 September 2025 (Unaudited) As at 31 December 2024 (Audited) Financial liabilities at amortized cost Trade payables 473,433,152 516,553,913 Borrowings and Murabaha (note 16) 610,418,737 653,090,861 Lease liabilities 262,662,787 289,493,552 Accrued expenses and other current liabilities 312,403,211 301,837,046 1,658,917,887 1,760,975,372 Non-current 436,879,234 566,107,046 Current 1,222,038,653 1,194,868,326 1,658,917,887 1,760,975,372 19.3 Financial instruments fair values: The table below shows the carrying amount and fair values of financial assets and financial liabilities, including their leve ls and the fair value hierarchy as at 30 September 2025 and 31 December 2024: Fair Value Carrying value Level 1 Level 2 Level 3* Total 30 September 2025 Financial assets measured at fair value Financial assets at FVOCI 1,284,972,511 2,422,842 1,279,880,728 2,668,941 1,284,972,511 1,284,972,511 2,422,842 1,279,880,728 2,668,941 1,284,972,511 31 December 2024 Financial assets measured at fair value Financial assets at FVOCI 1,245,541,883 6,349,950 1,230,417,570 8,774,363 1,245,541,883 Derivative financial instruments 3,298,256 - 3,298,256 - 3,298,256 1,248,840,139 6,349,950 1,233,715,826 8,774,363 1,248,840,139
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 18 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 19. FINANCIAL INSTRUMENTS FAIR VALUES AND RISK MANAGEMENT (continued) 19.3 Financial instruments fair values: (continued) *The fair value of the Group’s investments in a private equity fund is obtained from the latest net assets value report available (“NAV”) from the fund manager. There were no transfers between levels of the fair value hierarchy during period ended 30 September 2025 (31 December 2024: none). The fair value of financial instruments represented in trade receivables, cash and cash equivalents , borrowings and murabaha, lease liabilities, accrued expenses and other current liabilities and trade payables closely approximate their book value . The Group assessed that the fair value of these financial assets and financial liabilities approximate their carrying amounts lar gely due to the short-term maturities of these instruments. 20. COMMITMENTS AND CONTINGENCIES Contingent legal claims Certain subsidiaries of the Group are involved in litigation matters in their ordinary course of business, which are being defended. The ultimate results of these matters cannot be determined with certainty. However, the management believes that the results of these matters will not have a significant impact on the Group’s interim condensed consolidated financial statements as at 30 September 2025. The Group has the following contingent liabilities and commitments: As at 30 September 2025 (Unaudited) million As at 31 December 2024 (Audited) million Uncovered letters of credit 4.0 4.8 Letters of guarantee 10.3 7.1 Trade and marketing liabilities 19.8 18.9 Capital commitments (note 7) 108.0 204.0 21. SEGMENT INFORMATION For management purposes, the Group is organized into business units based on their products and services and has four reportable segments, as follows: 1. Publishing, visual and digital content: Comprise the publishing works locally and internationally, media activities, research and marketing the products of the Group and third parties. The segment is also involved in the publishing of specialized publications for third parties, issuance of licensed international publications / media platforms, translation services and selling electronic and visual content (note a). 2. Public relations and advertising: Comprise the local and international public relation services, studies, research, marketing, media events, international advertising, production, representation and marketing, audio visual and readable advertising media, and advertising panels. 3. Printing and packaging: Comprise printing works on paper and plastic, commercial posters, in addition to manufacturing of plastic products for the Group and others. 4. All other segments: Comprises of providing technical, training and educational courses, services, distribution of newspapers, magazines, publications, books and the publications of the Group, research, events management and other related activities. The wholesale and retail trading of school supplies, office furniture, installation, and maintenance of laboratories (note b). The following segments have been aggregated in these interim condensed consolidated financial statements: a. Publishing: This segment comprises the publishing and specialized publishing segments. These two segments have been aggregated based on the criteria of having similar nature of services and similar type or class of customer for their products. b All other segments: This segment is an aggregation of all other business activities and operating segments that do not individually meet the quantitative thresholds required under IFRS 8.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 19 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 21. SEGMENT INFORMATION (continued) The Chief Executive Officer and the Chief Operating Officer, both monitor the operating results of its business units separately for the purpose of making decisions about resource alloca tion and performance assessment. Segment performance is evaluated based on income and is measured consistently with income in the interim condensed consolidated financial statements. The following table presents revenues and profit information for the Group’s operating segments for the nine-month period ended 30 September 2025: Publishing, visual, and digital content Public relations and advertising Printing and packaging All other segments Total Adjustments and eliminations Total Revenues External customers 1,126,596,401 373,365,370 438,095,289 99,649,064 2,037,706,124 - 2,037,706,124 Inter-segment 268,796,721 - 19,233,152 2,102,419 290,132,292 (290,132,292) - Total revenues 1,395,393,122 373,365,370 457,328,441 101,751,483 2,327,838,416 (290,132,292) 2,037,706,124 Gross profit 267,482,547 101,407,656 23,132,106 32,129,809 424,152,118 (15,016,869) 409,135,249 Segment profit / (loss) attributable to equity holders of the Parent Company 100,776,853 22,016,935 (67,076,639) (41,585,280) 14,131,869 (23,366,104) (9,234,235) The following table presents revenues and profit information for the Group’s operating segments for the nine-month period ended 30 September 2024: Publishing, visual, and digital content Public relations and advertising Printing and packaging All other segments Total Adjustments and eliminations Total Revenues External customers 1,255,447,428 644,938,317 521,844,106 94,053,021 2,516,282,872 - 2,516,282,872 Inter-segment 265,074,140 - 19,845,778 2,706,099 287,626,017 (287,626,017) - Total revenue 1,520,521,568 644,938,317 541,689,884 96,759,120 2,803,908,889 (287,626,017) 2,516,282,872 Gross profit 378,168,809 368,754,438 29,438,853 21,818,939 798,181,039 (19,537,414) 778,643,625 Segment profit / (loss) attributable to equity holders of the Parent Company 210,096,641 254,767,440 (90,121,852) (6,228,501) 368,513,728 (51,771,959) 316,741,769
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 20 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 21. SEGMENT INFORMATION (continued) The following table presents total assets and total liabilities information for the Group’s operating segments as at 30 September 2025: Publishing, visual, and digital content Public relations and advertising Printing and packaging All other segments Total Adjustments and eliminations Total Total assets 3,992,292,955 6,903,078,837 1,064,393,050 826,502,362 12,786,267,204 (6,988,031,362) 5,798,235,842 Total liabilities 3,766,820,260 1,097,610,308 879,005,665 444,942,247 6,188,378,480 (3,708,637,872) 2,479,740,608 The following table presents total assets and total liabilities information for the Group’s operating segments as at 31 December 2024: Publishing, visual, and digital content Public relations and advertising Printing and packaging All other segments Total Adjustments and eliminations Total Total assets 3,908,445,810 5,122,712,720 1,207,481,225 801,386,017 11,040,025,772 (5,547,932,182) 5,492,093,590 Total liabilities 3,207,735,916 413,032,811 926,067,643 440,346,725 4,987,183,095 (2,826,189,539) 2,160,993,556 Inter-segment revenues and balances at the reporting date are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’ column. Adjustments and eliminations Finance costs and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a Group basis. Zakat, income taxes, and certain financial assets and liabilities are not allocated to those segments as they are also managed on a Group basis.
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 21 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 21. SEGMENT INFORMATION (continued) Revenue recognition timing: The Group recognizes revenue as per the terms and conditions in the contracts with customers for media, advertising, publishing, and other segments services as follows: Publishing and visual and digital content Revenue is recognized when customers obtain control of services; when services are rendered to customers and have been accepted. Invoices are generated and revenue is recognized at that point in time. Certain revenues from publishing and visual and digital content are recognized over time and on a “stand-ready” basis. The performance obligations are stand-ready obligations, and it is generally agreed that the nature of the promise in a stand-ready obligation is the promise that the customer will have access to a good or service. The standard describes a stand-ready obligation as a promised service that consists of standing ready to provide goods or services or making goods or services available for a customer to use as and when it decides to do so. Public relations and advertising Revenue is recognized over time and on a ‘stand-ready’ basis. The performance obligations are stand-ready obligations and generally agreed that the nature of the promise in a stand -ready obligation is the promise that the customer will have access to a good or service. The standard describes a stand-ready obligation as a promised service that consists of standing ready to provide goods or services or making goods or services available for a customer to use as and when it decides to do so. Advertising revenue is billed monthly, and payments are due shortly after the bill date. Such services are recognized as a performance obligation satisfied at a point in time. A receivable is recognized by the Group when the goods or services are delivered or rendered as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. Printing and packaging Revenue is recognized when customers obtain control of goods when the goods are delivered to customers and have been accepted at their premises. Invoices are generated and revenue is recognized at that point in time. Some contracts allow customers to return goods and replace them with other new goods, and no refunds are permitted. Revenue is recognized when the goods are delivered and have been accepted by customers. With respect to contracts that allow customers to return goods, revenue is recognized only to the extent that it is highly probable that a significant reversal will not occur in the amount of accumulated revenue. Other segments: Subscription revenues are billed and collected in advance. Revenue billed in advance of the rendering of services is deferred and presented in the statement of financial position as contract liabilities. Subscription revenue is recognized over time as the Group satisfies its performance obligations over time. The transaction price allocated to these subscriptions is recognized as a contract liability at the time of the initial sales transaction and is released on a straight- line basis over the period of service. Events management and research revenues are recognized when customers obtain control of services; when services are rendered to customers and have been accepted. Invoices are generated and revenue is recognized at that point in time. Penalties on overdue trade receivables are recognized on an accrual basis using the rates stipulated in the service agreements. For the nine-month period ended 30 September 2025 (Unaudited) For the nine-month period ended 30 September 2024 (Unaudited) Over a period of time 1,457,470,903 1,907,013,704 At a point in time 580,235,221 609,269,168 2,037,706,124 2,516,282,872
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 22 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 22. RELATED PARTY TRANSACTIONS AND BALANCES Related parties of the Group comprise entities where shareholders and key management personnel have control, joint control, or significant influence. The remuneration and compensation of board members and senior executives during the period were as follows: For the nine-month period ended 30 September 2025 (Unaudited) For the nine-month period ended 30 September 2024 (Unaudited) BOD expenses, allowances, and respective committees 8,443,500 8,489,500 Benefits of Group’s key management personnel: Short -term employee benefits 21,019,515 28,500,070 Long -term employee benefits 785,291 689,623 21,804,806 29,189,693 The significant transactions and balances between the Group and its related party are as follows: Related parties name Nature of relationship Nature of Transaction For the nine-month period ended 30 September 2025 (Unaudited) For the nine-month period ended 30 September 2024 (Unaudited) Sela Company Sela key management personnel is a close family member of a former key management personnel Events organization - 780,000 Qvest Arabia Company Joint Venture Capital contribution 1,254,000 - Broadcasting Services 5,382,010 - As at 30 September 2025, amounts due from and due to related parties, arising from transactions with related parties, were 4.3 million and 2.9 million, respectively (31 December 2024: 4.3 million and nil, respectively). In addition, the Group has an outstanding balance of 37.0 million (31 December 2024: 33.5 million) and those amounts have been paid for media services to an entity owned by one of the subsidiaries’ General Manager. This amount is included in prepayments and other current assets. 23. COMPARATIVE FIGURES Certain comparative figures related to transportation and shipment cost of the prior period amounts have been reclassified to conform with the presentation in the current period. The reclassification does not have any effect on the interim condensed operating loss, total assets, total liabilities, equity and interim condensed cash flows statement. Comparative figures reclassifications are mainly as follows: As previously reported Amount of reclassification After reclassification Cost of revenue – 30 September 2024 (1,726,174,641) (11,464,606) (1,737,639,247) Gross profit–30 September 2024 790,108,231 (11,464,606) 778,643,625 Selling, marketing and distribution expenses– 30 September 2024 (84,256,452) 11,464,606 (72,791,846)
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SAUDI RESEARCH AND MEDIA GROUP (SRMG) (A SAUDI JOINT STOCK COMPANY) 23 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) At 30 September 2025 24. SUBSEQUENT EVENTS No matters have occurred up to and including the date of approval of these interim condensed consolidated financial statements by the board of directors which would materially affect the interim condensed consolidated financial statements and the related disclosures for the period ended 30 September 2025. 25. BOARD OF DIRECTORS’ APPROVAL The interim condensed consolidated financial statements were approved by the Board of Directors on 15 Jumada Al-Ula 1447H (corresponding to 6 November 2025).