Kuala Lumpur, 21 April 2016 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s leading integrated media company, today announced the final tier dividend of 5.0 sen (2014: 5.0 sen) per ordinary share for the financial year ending 31 December 2015.
As such, total dividends declared for the current financial year totaled 10.0 sen (2014: 11 sen) per ordinary share. Payout is at 80% (2014: 161.4%) of Profit After Tax and Minority Interests (PATAMI) while dividend yield is at a five-year high of 7.9% per annum (2014: 6.30%).
“The FY 2015 dividend payout ratio reached the ceiling of our dividend policy of 60% – 80% of our PATAMI. This indicates the Group’s continuous resilient financial performance and reaffirms the management’s commitment to reward shareholders despite the prevailing economic conditions,” said Datuk Seri FD Iskandar, Group Chairman of Media Prima
For FY 2015, Media Prima recorded revenue in excess 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.
Datuk Seri FD Iskandar said, “Challenging business environment and subdued market sentiment had profound effect on the Group. Nonetheless, despite the prevailing economic conditions, Media Prima was able to maintain its leadership position across the Group’s media platforms and continue to reward our shareholders with a five-year high dividend yield.”
On prospects for 2016, Mohamad Ariff Ibrahim, Group Chief Financial Officer of Media Prima said, “The Group is bracing for another challenging year in 2016, with the domestic economic outlook factored from a lower anticipated GDP growth, prevailing low oil prices and the ongoing adjustments to the Goods and Services Tax (GST) implementation, while the industry is also facing increasing fragmentation among media players and with 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. The Group will also continue to expand its multi-platform content production for markets beyond MPB TV Networks while concurrently enhancing its respective platforms’ business strategies. Apart from investing in platform agnostic content, the Group is also committed to invest in its digital platform,” added Mohamad Ariff.
“Concurrently, the Group will continue to manage and improve its costs by managing its key cost drivers, coupled with the implementation of Group wide cost management initiatives,” he said.
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 launched home shopping programme CJ WOW SHOP, a joint venture between Media Prima Television Networks (“MPTN”) and Korean-based CJ O Shopping Co Ltd, is expected to provide the Group with an attractive opportunity to participate in the Malaysian retail market and realise new revenue opportunities for the Group.
The introduction of a new and improved tonton, Malaysia’s no. 1 video streaming portal with over 5.6 million registered users, is also expected to further augment MPTN’s traditional delivery platforms with the introduction of subscription-based Video on Demand (sVOD).
This is in addition to the redirection of 8TV’s entire urban content into Studio8, accessible only online via YouTube. 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 recent launch of Kool FM 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 the Group’s intellectual properties to provide new revenue streams. As part of its content strategy to go regional in the medium to longer term, Media Prima has entered into various joint-ventures with parties to joint-produce, enabling Media Prima to spread its production costs/ revenue and more importantly, gives the Group a platform to learn the market. The animation TV programme Ejen Ali, which premiered beginning April 8, is the result of such collaborations.
Media Prima Digital (“MPD”) will continue to provide a platform to innovate and incubate new digital products and services. Media Prima Labs (MPLabs), which is tasked to develop mobile products for the Group, has released two digital apps and games using the Group’s unique intellectual properties (IPs) – the JJCM app, which is based on one of TV3’s longest running TV programme Jalan Jalan Cari Makan, and the game Ejen Ali: MATA Training Academy, which is currently enjoying overwhelming response, being downloaded more than 100,000 times since its released in early March. With a strong portfolio of popular online services already developed, MPD is poised to venture further into the lucrative mobile applications market in 2016.
On a related note, Media Prima also announced the retirement of its non independent director Dato’ Abdul Kadir bin Mohd Deen. He has opted not to offer himself for re-election for the coming term.
“On behalf of Media Prima Berhad, I would like to extend our sincere appreciation to Dato’ Abdul Kadir for his years of exceptional service and contribution to the Group. His commitment to maintaining excellence in all areas within the Group has certainly inspired many and we wish him all the best in all his future undertakings,” said Datuk Seri FD Iskandar, Group Chairman of Media Prima.
He added that the Group also extends its warm welcome to two new directors appointed to the Group’s Board of Directors. They are Y.M Raja Datuk Zaharaton binti Raja Zainal Abidin and Datuk Mohd Nasir Ahmad, both of whom were appointed as Independent Non-Executive Directors on August 2015 and February 2016 respectively.
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Media Prima Berhad (“Media Prima” or “The Group”) is the leading fully-integrated media company in Malaysia.
With a complete repertoire of media-related businesses including in Television, Print, Radio, Out-of-Home, as well as Content and Digital Media, Media Prima, which is listed on the Main Board of Bursa Malaysia, is also one of Malaysia’s Top 100 largest listed companies by revenue.
In addition to having equity interests in Malaysia’s leading free-to-air television stations namely TV3, 8TV, ntv7 and TV9, the Group also owns more than 98 percent of The New Straits Times Press (Malaysia) Berhad (NSTP), Malaysia’s largest publisher with three national newspapers; New Straits Times, BH and Harian Metro.
Through its digital media subsidiary, Media Prima Digital embraces technical innovation, digital solutions and creative strategies. It offers a holistic digital consultancy which encompasses creative solutions, diversified platform services, e-commerce expertise and is also involved in the development and incubation of mobile applications and games.
tonton is Malaysia’s #1 video streaming portal offering FREE, advertising supported content (AVOD) with over 5.6 million registered users and a growth of 22,000 registrants on a weekly basis. Its vision is to be the #1 SVOD and home of best content for Malaysians whereas its mission is to be the no. 1 online video site, a must have service for every Malaysian and Malaysian home, to be available everywhere and to prevent piracy.
In Radio, the Group is represented by four very popular radio stations namely Fly FM, Hot FM, one FM and Kool FM. Media Prima is also a market leader in Out-of-Home Advertising, represented by Big Tree Outdoor Sdn. Bhd., The Right Channel Sdn. Bhd., Kurnia Outdoor Sdn. Bhd., Gotcha and UPD Sdn. Bhd.
The Group also owns a content creation subsidiary, Primeworks Studios Sdn Bhd. It is today Malaysia’s largest production company, producing TV content and feature films since 1984 and 1994 respectively.