KUALA LUMPUR, 29 November 2017 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s leading fully-integrated media Group is optimistic that the business initiatives launched under the Group’s business transformation plan in 2016 will be the catalyst for future growth. Under the plan, the Group’s revenue contributions from digital, non-traditional advertising and commerce have doubled for the first nine months of 2017 (9MFY17 or YTD17) compared to the corresponding period of 2016. Combined revenues from digital advertising, home shopping, e-commerce and subscription-based OTT service grew from RM50 million to RM123 million for YTD17.

Tan Sri Ismee Ismail, Group Chairman of Media Prima, said, “Media Prima is committed to delivering value to its shareholders by capitalising on the increased demand for e-commerce and digital content among consumers. The Group is continuously adapting to the increasingly challenging and competitive operating environment by executing its business transformation plan which focuses on delivering new revenue streams while implementing structural changes within the organisation to enhance efficiency. We believe the plan will enable Media Prima to improve our cost structures and create value in the short and medium terms”.

Datuk Kamal Khalid, Group Managing Director of Media Prima, said “The Group has been implementing its new business initiatives and made key structural changes within the organisation that includes organisational restructuring, manpower rightsizing, reducing print manufacturing facilities while strategically investing in digital publishing capabilities through the strategic acquisition of Rev Asia in August this year. We have also ventured into new markets abroad, which is another important component of our transformation plan. The Group has extended our consumers services such as tonton into Singapore and Brunei while Primeworks Studios has been selling video content to global OTT providers such as Netflix and Iflix.”

Datuk Kamal added that among the new ventures that have been very successful is home shopping. Launched in April 2016, CJ Wow Shop is a significant contributor to Media Prima’s revenue. For 9MFY17, CJ WOW SHOP continued to show an encouraging trend recording RM92.9 million in revenue. The Group plans to increase CJ WOW SHOP’s exposure to further tap the nation’s growing home shopping/e-commerce markets. Expansion by diversifying into more local product offerings are also on the cards. The Group also recorded significant growth in digital advertising revenue. The New Straits Times Press and Media Prima Radio Networks recorded over 100% growth in digital revenue for YTD17 compared to the previous year. Revenue for Media Prima’s consumer subscription-based services such as tonton increased by 27% while education portal FullAMark doubled sales for the year.

The new digital initiatives have enabled Media Prima to expand its audience base significantly as it complements the existing mass market already reached through the Group’s television, print and radio businesses. “Our reach has never been higher as audiences and advertisers move towards the digital content provided by our media platforms. Media Prima’s Harian Metro portal, for instance, recorded 3.7 million unique visitors in August 2017 via mobile devices, the highest among all local news publications. BH unique visitors stood at 3 million unique visitors while tonton currently has over

7 million registered users. With the inclusion of Rev Asia, our digital reach today stands as the third highest in Malaysia, behind only to Facebook and Google,” said Datuk Kamal.

He added that while the revenue contributions from the new digital and commerce initiatives have yet to offset the decline in revenue by Media Prima’s traditional businesses, the Group believes that it is a step in the right direction. The Group will stay the course with regards to its business transformation efforts and that the strategy for Media Prima moving forward is to grow further and monetise its strong digital reach.

Media Prima today announced its third quarter and nine months financial results ended 30 September 2017. Revenue for the nine months financial period ended 30 September 2017 declined by 8% against the previous corresponding financial period, attributed to lower advertising and newspaper sales as the shift to digital media amongst consumers continued. The Group recorded a Loss After Tax (LAT) of RM284.9 million against LAT of RM71.6 million in the corresponding period of 2016. This is mainly due to the impairment of investment in an associate in June 2017 and Early Retirement Scheme (ERS) payment in August 2017. If the one-off impairment of investment in an associate and ERS payment were excluded, the Group posted a lower LAT of RM90.2 million.

Media Prima’s revenue for 3QFY17 decreased by 12% against the preceding quarter (2QFY17) and incurred LAT of RM105.2 million for 3QFY17 mainly due to the declining trend of core advertising revenue and ERS payment of RM52.3 million. If the ERS payment is excluded, the Group posted a lower 3QFY17 LAT of RM52.9 million against RM4.0 million PAT in 2QFY17.

“We will continue to defend our leadership position in our traditional businesses. Our subsidiaries Big Tree Outdoor (BTO), Media Prima Radio Networks and Media Prima Digital, remained resilient, recording 5%, 2% and 41% revenue growth respectively compared to the same period in 2016. BTO is expected to benefit from the rollout of new advertising assets along the Mass Rapid Transit line and the Light Rapid Transit line extensions. BTO will continue to be a strong contributor to the Group’s revenue moving forward,” said Datuk Kamal.

END

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

43 Comments

  1. Hi Person In Charge of Video Platform

    Onwards Media Group is product on Video Content Management Platform.

    With the demand for video on mobile devices and big screens such as Samsung TV and LG TV, this has driven the demand for Telco such as TM, Maxis, etc and content operators such as Astro, Prima Media, RTM, etc to consider building their own content management platform. The main considerations that they have are:

    Able to encode the content to digital format for distribution to the mobile device, PC and TV
    Able to catalog the content into a digital library
    Able to insert advertisement on the fly to increase the revenue for the Telco and content operator
    Able to keep track of viewers subscription
    Able to keep track of viewers’ viewer pattern for future analysis and retargeting
    Able to plan for future content acquisition so as to achieve brand loyalty and reduce churn rate
    Our solution has been deployed to one of the largest content operators in the USA and has been rolled out in the Asia Pacific.

    We plan to work with the media and broadcasting sectors in Malaysia and would like to introduce our solution to Prima Media.

    Thanks

  2. I am extremely impressed together with your writing skills and also with the format in your blog.
    Is that this a paid topic or did you customize it your self?
    Anyway keep up the excellent quality writing, it is uncommon to see
    a nice blog like this one these days..

  3. Just wish to say your article is as astounding.
    The clearness in your post is simply spectacular and i could assume you’re an expert on this subject.
    Fine with your permission let me to grab your RSS feed to keep up to date with forthcoming post.
    Thanks a million and please keep up the rewarding work.

  4. We’re a gaggle of volunteers and opening a new scheme in our community.
    Your website offered us with valuable info to work on. You
    have performed an impressive process and our whole neighborhood shall be thankful to you.

  5. It’s in fact very complex in this busy life to
    listen news on TV, therefore I only use internet for that reason, and get the most recent information.

  6. I do not know if it’s just me or if everybody else experiencing
    issues with your blog. It appears as though some of the text in your
    content are running off the screen. Can somebody else please
    provide feedback and let me know if this is happening to them too?
    This may be a problem with my web browser because I’ve had this happen previously.
    Appreciate it

  7. Thank you for every other informative website. The place else could I am getting that kind of information written in such an ideal manner?
    I have a undertaking that I’m simply now operating on, and I have been on the look out for such information.

  8. Nice post. I was checking constantly this blog and I’m impressed!

    Extremely useful information particularly the last part 🙂 I care
    for such information much. I was looking for this particular info
    for a long time. Thank you and good luck.

  9. Attractive component of content. I simply stumbled upon your weblog and in accession capital to say
    that I get in fact loved account your weblog posts. Any way I will be subscribing in your feeds and even I fulfillment you get entry to consistently quickly.

  10. You’re so cool! I do not think I have read a single
    thing like this before. So great to find someone with
    some original thoughts on this subject matter.
    Really.. many thanks for starting this up. This site is something that is needed on the web,
    someone with some originality!

  11. Hello there! I know this is kinda off topic however , I’d figured I’d ask.
    Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa?
    My website goes over a lot of the same subjects as yours and I feel we could
    greatly benefit from each other. If you’re interested feel free to shoot me an email.

    I look forward to hearing from you! Terrific blog by the way!

  12. I will right away clutch your rss as I can not to find your email
    subscription link or e-newsletter service.
    Do you have any? Please permit me realize so that I may
    just subscribe. Thanks.

  13. Hi there! This post couldn’t be written much better!
    Looking at this article reminds me of my previous roommate!
    He constantly kept preaching about this. I most certainly will forward
    this post to him. Fairly certain he’ll have a great read. I appreciate you for sharing!

  14. I simply want to say I am just all new to blogging and seriously loved you’re blog. Very likely I’m want to bookmark your website . You surely come with remarkable posts. Regards for sharing your blog site.

  15. Great post. I was checking continuously this blog and I’m impressed!
    Very useful info particularly the last part 🙂 I care for such info a lot.
    I was seeking this particular info for a long time. Thank you and good luck.

  16. Thanks for a marvelous posting! I definitely enjoyed reading it, you could be a great author.
    I will be sure to bookmark your blog and will come back very soon. I
    want to encourage you to ultimately continue your great posts, have a nice afternoon!

  17. My partner and I absolutely love your blog and find the majority of your
    post’s to be what precisely I’m looking for. Would you offer guest writers to write content in your case?
    I wouldn’t mind composing a post or elaborating on a few of the subjects you write concerning here.
    Again, awesome web site!

  18. Thank you for the auspicious writeup. It in reality was once a enjoyment account it.
    Glance complicated to more delivered agreeable from you!
    By the way, how could we keep in touch? cheap flights 34pIoq5

  19. Hi, There’s no doubt that your site could be having internet browser compatibility issues.

    When I look at your website in Safari, it looks
    fine however when opening in I.E., it has some overlapping issues.
    I simply wanted to give you a quick heads up! Other than that, excellent
    blog! cheap flights 3aN8IMa

  20. Hmm is anyone else encountering problems with the pictures on this blog loading?
    I’m trying to find out if its a problem on my end or if it’s the blog.
    Any feed-back would be greatly appreciated. 31muvXS cheap flights

  21. I know this if off topic but I’m looking into starting my own weblog and was
    wondering what all is needed to get setup? I’m assuming having a blog like yours would cost a pretty penny?

    I’m not very web savvy so I’m not 100% sure. Any recommendations or advice would be greatly appreciated.

    Thanks

  22. Simply desire to say your article is as surprising. The clearness
    to your submit is just excellent and i could think you’re knowledgeable on this subject.
    Well along with your permission allow me to grab
    your RSS feed to stay up to date with forthcoming post.
    Thanks one million and please continue the enjoyable work.

  23. I blog often and I genuinely thank you for your content.
    Your article has really peaked my interest. I am going to bookmark your
    website and keep checking for new details about once per week.
    I opted in for your Feed too.

  24. Fantastic goods by you, man. I’ve understand your stuff previous to and you will be just too
    great. I actually like what you’ve acquired here, really like what you’re saying and exactly how in which you say
    it. You are making it enjoyable and you also still deal with to keep it wise.
    I are unable to wait to see significantly more of your stuff.
    This really is really a great site.

    Feel free to visit my web-site … DongCBulacan

Leave a Reply

Your email address will not be published.

Post comment