Kuala Lumpur, 23 April 2015 – Media Prima Berhad (“Media Prima” or “The Group”) Malaysia’s leading integrated media company today announced a final single tier dividend of 5.0 sen per ordinary share for the financial year ended 31 December 2014.
The announcement follows Media Prima’s Fourteenth (14th) Annual General Meeting (AGM), bringing the dividends declared by the Group in 2014 to 11 sen per ordinary share, approximately RM121.9 million and representing a 86.1% payout ratio from the normalised PATAMI of RM141.6 million (excluding exceptional item – Mutual Separation Scheme).
Media Prima had, on 25 February 2015, reported revenue of RM1.5 billion and Profit After Tax (PAT) of RM76.6 million for the financial year 2014. The Group recorded a reduction in revenue and profit after tax against previous corresponding year by 13% and 65% respectively due to market uncertainties and weak consumer sentiments. The Group’s results also reflect the implementation of a Mutual Separation Scheme (MSS) exercise in the month of December 2014 as part of the Group’s rationalisation and consolidation plan. Excluding MSS, the normalised PAT stood at RM141.6 million.
Tan Sri Johan Jaaffar, Chairman of Media Prima said, “2014 has indeed been a great challenge not only to the Group but also the media industry as a whole. The tragedies that had befallen our national carrier Malaysia Airlines, MH 370 and MH17, together with the Air Asia QZ8501 and the massive floods that hit the nation, had adversely impacted market sentiments in terms of advertisement spend”. He added that Media Prima’s results reflect the Group’s ability to remain resilient and deliver positive PAT margin for the year.
On the Group’s performance for 2014, Dato’ Sri Amrin Awaluddin, Group Managing Director of Media Prima said, “We had anticipated 2014 to be a challenging year given the intense competition, market uncertainties and weaker consumer sentiments which had all impacted advertisement spending throughout the year. Given the circumstances faced, the Group aggressively focused to review and improve internal efficiencies whilst managing cost prudently. The steps included implementation of a Group-wide cost saving initiative and implementation of MSS to enable the Group to have an optimised work force moving forward”.
He added that the Group’s media platforms had continued to maintain its dominant leadership position in 2014 as a result of its long-term commitment to invest in quality content and strong engagement with its audience and customers.
On prospects for 2015, Dato’ Sri Amrin said “The Group is bracing for yet another challenging year with the domestic economic outlook factored from a lower anticipated GDP growth, prevailing low oil prices and the implementation of Goods and Services Tax (GST). The industry is also faced with increasing fragmentation among media players and rapidly changing consumption trends. In view of these challenges, the Group seeks to grow its non-traditional revenue while consolidating its market share in core advertising revenue. At the same time, the Group will continue to manage costs by monitoring its key cost drivers coupled with the implementation of Group wide cost management initiatives.”
He concluded that Media Prima will also continue to expand the Group’s multi-platform content production for markets beyond the Group’s existing media platforms.