Abu Dhabi Media is to close its gaming unit Karkadann Games and its OOH arm Al Barq as part of the next phase of its ongoing strategic review.
The move means the two units are closing after only 16 months and two years of operation respectively.
A company spokesperson told Campaign: “Abu Dhabi Media has decided to close down the Karkadann and Al Barq brands after a comprehensive review that proved they are not commercially feasible. These two businesses have been underperforming and causing Abu Dhabi Media significant financial losses. As the company started implementing its new development strategy, it examined the feasibility of its commercially driven brands and decided to close down businesses that are not commercially viable or to withhold further investment in them. Abu Dhabi Media has also implemented a number of reforms and introduced better monitoring and assessment mechanisms to ensure its commercially driven brands are meeting their targets.
“Our digital group will continue to work on improving the performance of its assets in accordance with fully developed business plans. At this stage, we will focus more on the digital extension of our core brands such as Al Ittihad and The National, Zahrat Al Khaleej and Majed as well as TV channels and radio stations.”
The closures represent more upheavals at the national media company of the UAE. In May it announced a revised print and online edition of The National in a bid to grab more readership. In March, Abu Dhabi Media announced its third CEO in 13 months, with Malcolm Wall stepping down for Ayman Safadi. The news followed the earlier decision to change the company’s focus and put public service at the heart of its offering.
Filed Under: 2.News