Press Releases
16 Nov 2010 | MEDIA PRIMA EXCEEDS RM1 BILLION IN NET REVENUE FOR Q3 FY2010 TO CONSOLIDATE LEADERSHIP POSITION

PETALING JAYA, 16 November 2010 – Malaysia’s leading integrated media investment group, Media Prima Berhad (Media Prima), recorded marked increases in net revenue and Profit after Tax and Minority Interests (PATAMI) for the period ended 30 September 2010, (“Q3 FY2010”) compared to the corresponding period in 2009.

The  Group’s outstanding performance saw net revenue exceed the RM1 billion mark for the first time and PATAMI from continuing operations growing from RM39 million in Q3 FY2009 to RM154 million for the same period in 2010, with strong contributions from all media platforms. The Group also saw significant improvement in its EBITDA margin, which grew from 20% to 24% due to the increase in revenue and effective cost control measures.

In addition, an interim single tier dividend of 4 sen per share to be paid before the end of the year has been declared; reflecting the significant increase in earnings and profitability as well as an acknowledgment to the support of the shareholders. 

Excluding the negative goodwill arising from the acquisition of The New Straits Times Berhad (NSTP), and other Exceptional Items, net revenue grew by 23.3% while PATAMI from continuing operations recorded an increase from RM28.6 million for the third quarter of 2009 to RM63.1 million for the same period in 2010.

                                                                          2010          2009
                                                                    RM 000       RM 000


PATAMI                                                     154,094       39,020

(less)/add: Exception items ("EI)        (43,552)            927     

Patami Excluding EI                              110,542       39,947            

Less: PATAMI of NSTP Operations    (47,470)    (11,324)

PATAMI Excluding EI & NSTP                63,072      28,623

The Group’s total Exceptional Items for the period amounted to RM43.5 million. The negative goodwill arising from the NSTP acquisition, write-back on impairment of assets; and gain on disposal of assets amounting to RM76.0 million were off-set against RM32.45 million for the Employee Share Option Scheme (ESOS) charges, which is part of the Group’s strategy to retain and award its employees.

                                                                                              2010
Exception Item     :                                                         RM?000

Negative goodwill arising from NSTP acquisition   53,305
Writeback on impairment of assets                           17,288
Gain on disposal of assets                                           5,405
                                                                                          75,998
ESOS charge                                                               (32,446)

Total Exceptional items                                               43,552
 
"The Group’s exceptional performance is reflective of our strategy to consolidate operations, effectively manage costs and diversify revenue sources. The investments to expand and strengthen our media platforms have complemented the efforts to manage challenges and leverage opportunities presented by the increasingly healthy economic situation,” said Chairman of Media Prima, Datuk Johan Jaaffar.

Media Prima’s TV Networks – TV3, 8TV, ntv7 and TV9 – continued to be the Group’s significant contributor, with a consistent combined audience share of 46% in the third quarter of 2010. TV3 – the nation’s No.1 free-to-air (FTA) TV station – maintains its clear leadership position as the single most watched TV station with an audience viewing share of 28 percent on both FTA and Pay-TV (Source: Nielsen Audience Measurement).

This leadership position has benefited Media Prima’s TV Networks with free-to-air (FTA) advertising spend (ADEX) growing by 20.7% in the first nine months of the year, as the industry ADEX climbs back, albeit slowly and cautiously, towards pre-2008 levels (Source: Nielsen Audience Measurement).

Media Prima’s Radio Networks continued on its growth progression as Hot FM and Fly FM maintained their positions as one of the most tuned-in-to radio stations in the country among key demographic of young listeners aged 35 years and below, while One FM continued to reach listeners from the under 35 age group which makes up more than 60 percent of its listeners. (Source: Nielsen Audience Measurement)

Meanwhile the Outdoor Division – represented by Big Tree Outdoor Sdn. Bhd. (Big Tree Outdoor) and Kurnia Outdoor Sdn. Bhd. – continued with its impressive growth, having further strengthened its leadership position in the outdoor advertising sector with market share increasing from 33% to 43%. New concessions acquired in Q3 FY2010 such as from the Kuching and Kota Kinabalu International Airports are expected to further boost earnings contribution from this division.

Recently, Big Tree Outdoor was recognised as the top out-of-home media of the year in a survey by Advertising & Marketing magazine in which it emerged as Marketers’ Favourite Media Company In Targeting Specific Groups. In the October survey, Big Tree Outdoor garnered a significant 37.5% of client marketer votes to top the rankings again this year.

In the print division, NSTP’s daily Harian Metro has made significant strides and emphatically made its presence felt as Malaysia’s number one newspaper with an average daily circulation of 400,000 copies while Metro Ahad reached 458,000 readers on Sundays. (Source: Internal figures). NSTP’s Malay daily Berita Harian is also making its presence felt in new media. The Berita Harian website has a solid 33% readership based on a survey of 1.4 million online readers conducted by Nielsen Media Index, making it the number 1 news portal in the country, while Harian Metro’s portal ranks second with 29% readership penetration.

The Group’s new media presence, has grown to a new level with the recently introduced TonTon portal which opens a new horizon of possibilities for viewers to watch programmes and advertisers to reach them through an advanced profiling system. Leveraging on the shift towards consuming content online, TonTon has to-date garnered over 1.1 million registered viewers with over 10.5 million average page views for Q3 FY2010 compared to 9.9 million online viewers during the same period in 2009. 
“Our focus on delivering compelling content to our audiences has not changed, but we are now moving in new directions – for example by offering a seamless media landscape by integrating our offerings in ways that a new generation of viewers are comfortable with. With rising Internet and broadband penetration in Malaysia, it is only natural that we have a convergence of our products in the digital media space for our consumers and advertisers,” said Dato’ Amrin Awaluddin, Group Managing Director, Media Prima.

“We will continue to invest in quality programming to retain our core audience and generate revenue from our core capabilities, while we expand our reach to a new generation of viewers and utilise new assets as a long-term approach. This is aligned to our strategy to deliver the widest multimedia distribution offerings on a single integrated platform in Malaysia,” added Amrin.

Whilst sustaining its effort to improve financial and operational performance, Media Prima has continued to reinforce its Corporate Responsibility (CR) initiatives, which included the launch of two disaster relief funds, the Tabung Bantuan Bencana Pakistan in partnership with UNICEF, which collected over RM600,000 to benefit the survivors of the flood in Pakistan.

In light of the recent flooding in the northern region of Peninsula Malaysia, the Group had also launched Tabung Bantuan Bencana NSTP-Media Prima in effort to raise relief funds for those affected in Kedah and Perlis.

To kick-off relief efforts, the Group contributed RM100,000 for the purchase of basic necessities, and deployed its staff volunteers to aid flood victims who had to be evacuated from their homes in the past  few weeks.

Media Prima’s efforts in CR had also received some recognition locally and internationally with TV3 having recently won the regional UNICEF International Children’s Day in Broadcasting Awards for its documentary ‘Terubuk Masin Untuk PM’. It had also recently received a notable mention as a shortlisted nominee at the Association of Chartered Certified Accountants (ACCA) MaSRA Awards for its inaugural Sustainability Report 2009 which was published in March 2010.

“The recognition received is truly an honour and further inspires us to improve the lives of Malaysians and the environment in which we operate. We have always strived to embed a CR element to our business thinking, however big or small to help others grow with us in a sustainable manner,” said Amrin.

-Ends-

For more information, please contact:
Media Prima Berhad at 603.7726.6333
Eliza Mohamed at eliza@mediaprima.com.my / ext. 3302
www.mediaprima.com.my / http://twitter.com/MPBtalk

About Media Prima
Media Prima Berhad (Media Prima), a company listed on the Main Board of Bursa Malaysia, is Malaysia’s leading integrated media investment group. It currently owns 100 per cent equity interest in TV3, 8TV, ntv7 and TV9. In addition, Media Prima now owns more than 90 per cent equity interest in The New Straits Times Press (Malaysia) (NSTP) Berhad, one of Malaysia’s largest publisher which publishes three national newspapers;  the New Straits Times, Berita Harian and Harian Metro.

Media Prima also owns three radio networks, Fly FM, Hot FM and One FM.  Other cross media interests of Media Prima include content creation; event and talent management.

The Group’s leadership position in the Outdoor business is represented by Big Tree Outdoor Sdn Bhd, UPD Sdn Bhd, Right Channel Sdn Bhd, Kurnia Outdoor Sdn Bhd and Jupiter Outdoor Network Sdn Bhd.

The Group has strong online presence through its digital communications and broadcasting subsidiary, Alt Media, via the Lifestyle Portal gua.com.my and the newly launched TonTon.com.my, a cutting-edge video portal with HD-ready quality viewing experience that offers the individualism of customized content and interactivity of social networking

Outside of Malaysia, Media Prima has a controlling stake in TV3 Network Ltd, Ghana’s leading private television station.

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