KUALA LUMPUR, 21 November 2019 – Media Prima Berhad (“Media Prima” or the “Group”), Malaysia’s leading fully-integrated media group, announced today its nine months results for the financial period ended 30 September 2019 (“9MFY19”).
The Group’s home shopping and digital revenue increased by 9% for 9MFY19. Media Prima Television Networks’ CJ WOW SHOP remained on the upswing with a 12% increase to RM169.9 million in 9MFY19 against RM151.9 million in the comparative period (“9MFY18”).
Media Prima maintained its leadership positions as Malaysia’s most popular source for content. According to Comscore, the Group remains Malaysia’s top choice for mobile content and has the third-highest digital audience reach behind Google and Facebook.
In film production, Primeworks Studios’ (“PWS”) Sangkar climbed high at the Malaysian box office having collected over RM12.0 million after three weeks in cinemas nationwide. PWS aims to release two more films this year — Wira on 21 November and Ejen Ali the Movie on 28 November. Big Tree, which recently celebrated its 25th anniversary, has retained its dominant market position as Malaysia’s leading out-of-home solutions provider. In broadcast media, Media Prima remained Malaysia’s most-watched channels with a 35.2% television audience share.
The New Straits Times Press’ online brand for Harian Metro recorded the highest unique visitors for online news in Malaysia for the third quarter of 2019. According to Comscore, myMetro reached 13.6 million unique visitors from July to September 2019. Meanwhile, the average monthly unique visitors for BH Online and NST Online is 4.2 million and 2.0 million respectively.
Subsequent to the reporting period, Media Prima announced that it will embark on the next phase of its transformation exercise. This includes changing its business model and restructuring internally to enable the Group to be sustainable given uncertain macroeconomic conditions and disruptive changes in the global and local media sector.
Tougher operating conditions continued to impact the Group’s performance as a whole. Media Prima posted RM801.4 million in Group revenue for the nine months against RM894.8 million in the comparative period. The Group recorded a loss after tax (“LAT”) of RM79.2 million against a LAT of RM22.1 million in 9MFY18.
The lower LAT for 9MFY18 was attributable to a one-off gain on the sale of shares in an associate amounting to RM45.4 million. Excluding this one-off item in 9MFY18, the decline in the Group’s loss in 9MFY19 would be lower against the corresponding period.
Traditional advertising and circulation revenues for the nine months dropped by 15% and 21% respectively against the corresponding period. Overall cautious spending contributed to revenue decline across the Group’s business segments.
Datuk Syed Hussian Aljunid, Group Chairman of Media Prima, said: “The Group’s overall performance continues to be challenged due to the decline in traditional advertising and circulation revenues. As we head into the final months of 2019, we will accelerate the next phase of our transformation to adapt our businesses to the fast-changing conditions in the media sector.”
Datuk Kamal Khalid, Group Managing Director of Media Prima, said: “The Group will continue to build on the positive growth achieved by our digital and commerce initiatives while taking measures to further improve our costs and operational efficiencies. The next phase of our business transformation aims to deliver more effective solutions across our various media platforms to meet the evolving demands of the media industry.”
END OF PRESS RELEASE