1)   What are the main media assets within Media Prima Berhad (MPB) group?

2)   What is the background of MPB?

3)   Who are the substantial shareholders of MPB?

4)   Please elaborate on the convertible instruments of MPB.

5)   Please elaborate on MPB’s borrowings.

6)   What is the status of the acquisitions undertaken in recent years?

7)   How does MPB differentiate its television stations and radio channels from one another?

8)   What is MPB’s dividend policy?

9)  Please elaborate on the financial performance of MPB.

1)  What are the main media assets within Media Prima Berhad (MPB) group?

      The main group structure is depicted in the following diagram:

2)    What is the background of MPB?

       
MPB was established pursuant to a comprehensive group and debt restructuring exercise involving the de-merger of Malaysian Resources Corporation Berhad’s media assets, namely Sistem Televisyen Malaysia Berhad (“TV3”) and the New Straits Times Press ( Malaysia) Berhad (“NSTP”). Under the corporate restructuring exercise completed in August 2003, MPB acquired a 100% equity stake in TV3 and a 43% equity stake in NSTP. MPB assumed the listing status of TV3, which culminated in the successful listing of MPB on the Main Board of Bursa Malaysia Securities Berhad on 22 October 2003.

In 2003, MPB also acquired an 80% equity stake in Merit Idea Sdn Bhd, which owns a 99.5% stake in Metropolitan TV Sdn Bhd, a company with a Content Application Service Provider license for free-to-air ("FTA") television broadcasting. This enabled the group to launch a second television network under the brand of “8TV” on 8 January 2004. On June 11 2007, MPB had entered into a conditional share sale agreement with Intact Media Sdn Bhd to acquire the remaining 20% equity stake in MISB.

MPB also completed its 100% acquisitions of CH-9 Media Sdn Bhd, the owner and operator of the former Channel 9 television network and Natseven TV Sdn Bhd, the owner and operator of ntv7 television network in 2005. Channel 9 was re-launched as TV9 on 26 April 2006.

Year 2005 also witnessed MPB’s maiden efforts to venture into radio broadcasting through the acquisition of Perintis Layar Sdn Bhd, which holds a 75% stake in Max Airplay Sdn Bhd (“Max”). Max has been awarded the right to manage, operate and maintain a radio station by Malaysia Airports (Sepang) Sdn Bhd. In addition, MPB also acquired Synchrosound Studio Sdn Bhd, a radio broadcasting license holder, during the same year.

 

3)    Who are the substantial shareholders of MPB?

        As at 30 June 2010, the substantial shareholders of MPB are as follows:

(i)  Employees Provident Fund Board (23.41%)

(ii) Kuala Lumpur City Nominees (Tempatan) Sdn Bhd

      KLCS Asset Management Sdn Bhd for Gabungan Kesturi Sdn Bhd (12.58%)

(iii) Altima Inc (8.99%)

(iv) Kumpulan Wang Persaraan (6.40%)

 

 

 

4)     Please elaborate on the convertible instruments of MPB.

i) Employee Share Option Scheme (“ESOS”)
The scheme was effective for a period of five (5) years and has expired on 10 January 2010.

 

5)    Please elaborate on MPB’s borrowings.

As at 31 March 2010, being the latest available date of the quarterly unaudited consolidated results of MPB, the borrowing details are as follows:

 ^Notes:

^{(i) On 7 September 2007, MPB issued BG MTN amounting to RM170.0 million in nominal value pursuant to the BG MTN Programme. On 12 September 2007, MPB issued CP amounting to RM100.0 million in nominal value pursuant to the CP Programme.}

^{The principal terms of the CP/BG MTN are as follows:}

^{(a) The face value of the CP is RM100 million and the BG MTN is RM170 million;
(b) The CP are issued at a discount to face value and shall be repayable at par;
(c) The interest on the BG MTNs of RM100 million and RM70 million are 4.15% and 4.27% per annum respectively, payable semi-annually in arrears, calculated on the basis of the actual number of days elapsed in a year of 365 days with the last payment of interest to be made on the maturity date of the BG MTNs;
(d) The tenure of the BG MTN is up to 5 years from the date of issue; and
(e) The maturity date of the CP is between one (1) to twelve (12) months up to 7 years.}

^{(ii)Term loans obtained by MPB.}

6) What is the status of the acquisitions undertaken in recent years?

7) How does MPB differentiate its television stations and radio channels from one another?

There are four (4) FTA television stations under MPB’s television networks: TV3, 8TV, ntv7, and TV9. TV3 is targeted towards the mass market skewed towards the Malay audience, with progressive mindsets. 8TV targets the young Malaysians, urban and Chinese audience from the 15-24 age group. ntv7 targets the Malaysian urban households from the 24-45 age group, kids & Chinese audience. TV9 is targeted towards the mass market skewed towards the “traditionalist” Malay audience.

There are two (2) radio stations under MPB’s radio networks: Fly.fm and Hot.fm. Fly.fm is targeted towards the urban youths from the 18-25 age group and young adults from the 25-35 age group. Hot.fm is targeted at the mass market skewed towards the Malay listeners. 

8) What is MPB’s dividend policy?

The dividend payout is based on consolidated Profit After Tax and Minority Interests (“PATAMI”) on a tiered basis ranging from:

(i) Minimum of 20% for the first three (3) years; and
(ii) Maximum of 50% thereafter.

Management shall be accorded the flexibility to adjust the Dividend Payout Ratio (within the range of 20% to 50%) based on:

• PATAMI
• Funding requirement (capital expenditure and investments);
• Availability of cashflow; and
• Availability of Section 108 tax credits

9) Please elaborate on the financial performance of MPB.

MPB, in its efforts to continuously improve its investor relations function, releases a set of presentation materials after the announcement of its quarterly consolidated results to the Exchange. Please refer to these quarterly presentation materials available on pdf. format on MPB’s website here. If you have any further queries, please email us at investors@mediaprima.com.my