Lamasat to close studio business due to low profitability

Lamasat board approves closure of economically unviable studio

Lamasat Co.’s board of directors decided on Sept. 13 to shut down the company’s studio business, citing lack of economic viability.

For more news on listed companies

Lamasat Studio 5, located in Al-Ahn district of Madinah, is the only remaining studio operated by the company, it said in a statement to Tadawul.

The studio contributed just 0.0075% of total revenue, generating SAR 573,000 out of SAR 76.23 million for the six-month period ended on June 30, 2025. The business also recorded operating losses of SAR 130,600 during the same period, in addition to accumulated losses from previous years

Based on these financial results and in line with its restructuring strategy, the board approved a closure plan that considers market conditions, falling demand and prices, as well as the shift to modern technologies that have replaced many traditional studio activities.

The plan involved ceasing new orders from the date of announcement, and gradually downsizing staff for complete closure by June 30, 2026.

Lamasat stressed that the closure will not result in future financial losses and will be carried out in a way that safeguards the rights of all stakeholders while complying with professional and administrative standards.