Kuala Lumpur, 23 February 2017 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s largest integrated media group today announced the results for the financial year ended 31 December 2016 which incorporated the Group implementing a key restructuring exercise to optimise its print manufacturing operations. The exercise is part of the Group’s continuous business review to optimise its printing plant capacity and unlock potential cost savings while investing in digital expansion activities and new business initiatives.
The one-off expenses of the restructuring exercise and start-up costs of the new business initiatives are reflected in Media Prima’s financial results for the financial year ended 31 December 2016.
|Year Ended 31.12.2016 RM||Year Ended 31.12.2015 RM||Change|
|2.||Profit Before Tax (Before Exceptional Items)||32.0m||200.1m||(84%)|
|3.||Exceptional Items (“EI”)
i. One-off Restructuring Expenses (Print Manufacturing Operations)
ii. Start-up costs of New Initiatives
|4.||Profit After Tax/Loss After Tax||(69.8m)||138.7m||(>100%)|
|5.||Normalised Profit After Tax (Excluding EI)||71.5m||138.7m||(48%)|
- Media Prima recorded revenue of RM1.29 billion and registered normalised Profit After Tax (PAT) of 71.5 million for the financial year ending 31 Dec 2016.
- New Straits Times Press (M) Berhad implemented the restructuring of its printing manufacturing operations and implemented a one-off restructuring expenses of RM97.9 million (“Restructuring Expenses”).
- Media Prima implemented new business initiatives (“New Initiatives”) which incurred startup costs due to gestation period.
- Incorporating the one-off Restructuring Expenses and also the start-up costs of the New Initiatives, Media Prima recorded Loss After Tax (LAT) of RM69.8 million.
Datuk Seri FD Iskandar, Group Chairman of Media Prima said, “The Group had anticipated 2016 would be another challenging year given the intense competition, market uncertainties, weaker consumer sentiments and digital disruptions all impacted advertisement spending and newspaper sales throughout the year resulting in a 10 percent decline in revenue compared to previous financial year. Given the circumstances faced, the Group had aggressively embarked on a Group-wide review of our business and executed key strategies to realise opportunities for new revenue sources while managing costs prudently,”.
Datuk Seri FD added that Media Prima is committed to deliver growth and value to its shareholders where the Group’s Board of Directors had recommended a final single tier dividend of 4.0 sen per ordinary share for the financial year ended 31 December 2016 which is subject to the approval of shareholders at the forthcoming Sixteenth (16th) Annual General Meeting of the Company. With the recommendation of the final single tier dividend, total dividends declared for the current financial year is 8.0 sen per ordinary share.
Dato’ Sri Amrin Awaluddin, Group Managing Director of Media Prima said that the strategic initiatives undertaken during the year were key for the Group’s long-term growth and sustainability. “2016 saw the Group undertake efforts to restructure our print operations as more of our consumers migrate towards our digital products such as the electronic version of our newspapers. We have also made disciplined investments in new business initiatives that will provide new revenue sources for the Group moving forward,”.
He added that the new initiatives have helped cushioned the impact of declining traditional revenue. Revenue contributions from the Group’s home shopping venture, CJ Wow shop has surpassed RM60 million having been in operations for only 9 months, had mitigated the decline in Free-To-Air (FTA) television advertising revenue for Media Prima Television Network (MPTN). The Group’s television platform registered an overall PAT of RM5.2 million for FY 2016, a 93% reduction year-on-year due to the lacklustre FTA adex whilst operating costs of new business initiatives which are still in a period of gestation contributed to lower earnings for the year.
Media Prima Radio Network (MPRN) and Big Tree Outdoor (BTO), the Group’s radio and outdoor platforms, both recorded a 1% growth in revenue year-on-year. MPRN recorded RM68.4 million in revenue for FY 2016 against RM67.7million last year, while BTO secured RM158.7 million in revenue against RM157.6 million recorded within the same corresponding period last year. MPRN’s lower operating expenses incurred during the year improved the PAT to post a 40% increase against comparative period.
The Group’s digital media business, led by Media Prima Digital (MPD), had also recorded an increase in revenue by 20% against comparative year, chalking up RM32.5 million in revenue for FY 2016 as compared to RM27.1 million in FY 2015, although PAT for the current financial year was considerably lower for MPD, as deferred tax assets were recognised in FY 2015.
The Group’s print and content creation, led by The New Straits Times Press (M) Berhad (NSTP) and Primeworks Studios (PWS), was impacted by the challenging operating environment when they posted a lower revenue of RM415.5 million and RM115.3 million respectively for FY 2016, a decline of 23% and 4% year-on-year in FY 2015 respectively.
On prospects for 2017, Dato’ Sri Amrin Awaluddin said, “The Group will continue to face a challenging period moving in 2017 due to economic uncertainties, consumer consumption fragmentation, a shift in adex to digital platforms and increasing competition in the media landscape. Furthermore, new business initiatives implemented by the Group in 2016 to diversify its revenue portfolio is expected to remain in gestation for 2017. The Group will continue to review its business and improve cost efficiencies, defending our leadership position in traditional media by focusing on quality content delivery and at the same time, grow business adjacencies to diversify existing revenue streams,” he
For television networks, prospects for 2017 will hinge on the continuous investment in linear TV offerings whilst improving the digital content experience on tonton and expanding consumer business through CJ WOW SHOP home shopping. For Content Creation, Primeworks Studios will strive to develop and own hit intellectual properties, as a way to grow external revenue and distribution business, in part to reduce its dependency on MPTN. Primeworks Studios will also continue to explore international markets through various co-productions and expanding animation investment.
The outlook for the Group’s Radio Network via MPRN is also expected to remain positive, especially with continuous existing efforts to strengthen its content quality across multiple platforms and to enable growth in the traditional and digital radio landscape. The introduction of Radio Plus serves to offer clients with integrated solutions and innovative ideas.
Big Tree Outdoor will also bank on growth opportunities from the expansion into rapid transit advertising concessions secured in 2016. These include the new MRT line and LRT line extensions. In addition, digital assets located at key premium sites is expected to remain a strong contributor to the platform. The Group’s digital media business will also continue to support all digital initiatives within the Group in terms of developing digital products and services as well as upselling the Group’s digital marketing.
For Print Media, despite the challenging outlook for the traditional newspaper business, the Group remains committed to preserve its print business. Continuous cost management and operational efficiency will be crucial, especially in view of the lower advertising and newspaper sales outlook affecting the industry. Continued diversification into digital initiatives will also continue as a way to enable future growth.
For further information, kindly contact:
Media Prima Berhad at: 603- 1300 300 672 Ext: 8949 or 03 – 2724 8949
Azlan Abdul Aziz at [email protected]/ or 6012-614 0522
www.mediaprima.com.my | http://twitter.com/MPBtalk
About Media Prima
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.