● Profit after tax increased to RM59.0 million on the back of successful revenue diversification and asset-light strategies in FY18.
● Digital and commerce revenue in FY18 increased by 76% to RM301.0 million; offsets decline in traditional revenue to overall Group revenue.
● Group revenue dropped by 1% in FY18, compared to a 7% decline in FY17.
● Barring one-off items, the Group would have posted a lower loss after tax in FY18 by 42% against the comparative period.
KUALA LUMPUR, 27 February 2019 – Media Prima Berhad (“Media Prima” or the “Group”), Malaysia’s largest integrated media group, announced today that it posted a profit after tax (“PAT”) of RM59.0 million for the financial year ended 31 December 2018 (“FY18”), sharply reversing a loss of RM669.7 million a year ago (“FY17”). This was achieved on the back of successful revenue
diversification, as well as the execution of asset-light strategies, in-line with the Group’s transformation mission.
The Group’s improved PAT in FY18 was contributed by a one-off gain of RM133.1 million following the completion of the sale and leaseback arrangement. This is in-line with the asset-light strategy which enables the Group to be more lean and agile as Media Prima accelerates digital and commerce growth in 2019.
While the media industry continued to face obstacles within the current economic landscape, Media Prima’s digital and commerce ventures recorded positive growth in 2018. Digital and commerce revenue in FY18 increased by 76% to RM301.0 million. This has cushioned the revenue decline from the traditional business segments as reflected in Media Prima’s better financial performance in the year. Group revenue dropped by 1% in FY18, compared to a 7% decline in FY17. Media Prima believes that this is a testament to the positive progress of its ongoing initiatives to become Malaysia’s leading digital-first content and commerce company.
Digital reach and advertising revenue continued to grow across Media Prima’s multiple platforms. Group digital revenue increased to RM87.9 million in FY18 from RM41.5 million in the comparative period, underscoring the success of its digital strategies which includes smart collaborations and strategic acquisitions.
Media Prima’s collaboration with YouTube has delivered significant results — the Group’s channels saw an increase in viewership to 1.1 billion in FY18. In digital publishing, REV Asia Holdings (“REV Asia”) acquired a 25% stake in Monster Scape Sdn Bhd, owner and publisher of Chinese social news portal TanTanNews, to strengthen its dominant position in the millennial Chinese-speaking online community. This will allow REV Asia to scale at a rapid pace to cater to the demand for Chinese content from audiences and advertisers.
These strategies have led the Group to surpass Google and Facebook as the most popular choice for mobile content among Malaysians. According to the data from US-based media measurement and analytics company Comscore Mobile Metrix® Top 100 Properties, Total Audience, Dec 2018, Malaysia, Media Prima tops the list with 13.60 million total unique visitors, a 62% increase from December 2017.
Media Prima’s digital strategy has extended to its traditional businesses. Subsequent to the reporting period, the Group’s out-of-home (“OOH”) subsidiary, Big Tree, launched a new digital service, Big+, to boost offline to online traction for advertisers. With the increase in demand for hyperlocal advertising, Big+ targets commuters using geo-fencing technology and prompts consumers on their mobile devices to immediately take action upon viewing advertised products or services on static or digital OOH media. This will be central to Big Tree’s growth as it will provide higher yields compared to traditional assets.
The highlight of Media Prima’s transformation in 2018 is its home shopping segment which has shown promising growth year-on-year and expected to break even in 2019. Media Prima Television Networks’ (“MPTN”) CJ WOW SHOP, generated total sales of RM213.1 million in FY18, a 65% increase from RM129.5 million in the previous year. CJ WOW SHOP amassed a total of 1.2 million customers in FY18, and will be allocated more broadcast hours and resources in 2019.
Datuk Mohd Nasir Ahmad, Group Chairman of Media Prima, said: “The improved financial performance underscores the positive impact of Media Prima’s transformation plan. We believe our initiatives in FY18 have built a stronger foundation to tap into new revenue growth and opportunities in 2019. Moving forward, we will remain focused on honing our competitive advantage in the digital and commerce segments, while keeping a close watch on operational efficiencies as part of our strategies to enhance shareholder value.”
Barring unforeseen circumstances, the Group remains confident that its business transformation plan will continue to deliver substantial results. Apart from accelerating digital and commerce strategies, the Group will continue to defend its leadership position in traditional media.
Datuk Kamal Khalid, Group Managing Director of Media Prima, said: “Our FY18 results show that our transformation initiatives have begun to improve our margins and offset losses from our traditional segments. Barring exceptional items, the Group would have also posted a lower loss after tax by 42% against the comparative period. Nonetheless, we believe operating as an asset-light Group, as well as a leading player in the traditional and digital landscape, gives us greater agility and a competitive edge to rapidly expand in key growth areas.”
END OF PRESS RELEASE
For further information, kindly contact:
Media Prima Berhad at +603 1300 300 672 (ext. 8949) or +603 2724 8949
Azlan Abdul Aziz at [email protected] or +6012 614 0522