Kuala Lumpur, 26 February 2016 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s leading integrated media company today announced the Group’s results for the financial year ended 31 December 2015.

Media Prima recorded revenue of RM1.4 billion and Profit After Tax (PAT) of RM138.7 million during the twelve months under review. The Group recorded a reduction in revenue by 5% against the preceding financial year. PAT increased significantly as a one-off Mutual Separation Scheme (MSS) cost was incurred in the preceding financial year.

Quarter-on-quarter comparison, the Group recorded RM367.1 million in revenue during 4QFY15, compared to RM384.7 million registered in 4QFY14, while PAT increased from a loss of RM30 million in 4QFY14 to RM32 million in 4QFY15.

Datuk Seri FD Iskandar, Group Chairman of Media Prima said, “The Group had anticipated a period of subdued market sentiments in 2015, with lower advertising revenue recorded by its media platforms with the exception of our Out-of-Home Advertising business. The Group’s financial performance for the fiscal year reflected the challenging environment faced by Media Prima. Nonetheless, despite the challenges faced, Media Prima was able to maintain its leadership position across the Group’s media platforms,”.

He added that the Group declared a final single tier dividend of 5.0 sen per ordinary share for the financial year ended 31 December 2015, bringing the total dividends declared for the current financial year to 10.0 sen per ordinary share which represents 80% of the Group’s PATAMI.

On prospects for 2016, Dato’ Sri Amrin Awaluddin, Group Managing Director of Media Prima said “As the global economic environment continues to remain uncertain, 2016 is expected to remain challenging for the Group. In addition to the prevailing low commodity prices and a lower forecasted Malaysia GDP, factors such as consumer fragmentation, technological advancements, a shift in advertisement to digital and increased competition from new entrants and global media players will also pose acute challenges to the Group throughout 2016”.

He added that while the Group remains cautious on advertising growth in view of the consumer and economic sentiments, Media Prima will focus on the execution of its key strategies to provide the best local and international content while aiming to penetrate new markets and build additional revenue streams.

The recently announced home shopping joint venture by Media Prima Television Networks (“MPTN”) in partnership with Korean-based CJ O Shopping Co Ltd will provide the Group with an attractive opportunity to participate in the Malaysian retail market and realise new revenue opportunities for the Group. MPTN will also continue to make prudent investments in local and international content to ensure it maintains the dominant positions of its television channels.
Meanwhile, the completed acquisition of two new radio stations in 2015 would enable the expansion of Media Prima Radio Network’s (“MPRN”) offerings to a wider segment of listeners, media buyers and advertisers. MPRN’s existing radio stations will continue to compete for listenership and revenue in their respective demographic markets whilst adapting to digital music trends. MPRN has one of the largest social media presence with over 6.2 million users with digital applications for its three radio stations.

Big Tree Outdoor (“BTO”), Media Prima’s Out-of-Home (OOH) Advertising company will continue its strategy of growing its digital out-of-home solutions at premium sites and securing key concessions which have contributed positively to the Group’s earnings in 2015. Media Prima had in 2015 secured concession rights for Nu Sentral, naming rights for KL Monorail Bukit Bintang and LRT Kelana Jaya line Bangsar stations and expanded its Cubiq Digital boards in two key locations in Jalan Bangsar and Jalan Imbi. The expected completion of rapid transit lines in 2016 offers new concession opportunities for the Group. BTO currently holds 44% share in the OOH media solutions market.

In Print Media, The New Straits Times Press (M) Berhad (“NSTP”) continued to diversify its revenue streams while enhancing brand and content offerings in 2015. These include the launch of mobile friendly applications for New Straits Times, BH and Harian Metro as well as offering news content through digital platforms such as news website, ePaper, Google Play Newsstand as well as social media avenues like Facebook, Instagram, Twitter and YouTube. The Group also offers news and contents through its digital interactive magazines ZIP, Tech Kingdom and also Premium BH Plus. The new offerings are expected to contribute positively to NSTP.

Primeworks Studios (“PWS”), Media Prima’s production company will continue producing hit content for MPTN and external markets including for new digital platforms. Programmes produced by PWS dominated the Top 10 programmes with the highest viewers in Malaysia across all television channels in 2015. These include Anugerah Juara Lagu (3.7 million viewers), Anugerah Bintang Popular Berita Harian (3.2 million viewers) and Bintang Bersama Bintang (2.7 million viewers). PWS will also focus on the monetisation of intellectual properties to provide new revenue streams.

Media Prima Digital (“MPD”) will continue to provide a platform to innovate and incubate new digital products and services. With a strong portfolio of popular online services already developed such as Tonton, MPD is well equipped to venture into the lucrative mobile applications market in 2016.

End

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