KUALA LUMPUR, 27 August 2020 – Media Prima Berhad (“Media Prima” or the “Group”), Malaysia’s leading fully-integrated media group, announced today its results for the financial period ended 30 June 2020 (“1HFY20”).
While the Group’s businesses continued to be pressured by industry challenges exacerbated by the impact of the Covid-19 pandemic on the economy, Media Prima’s revenue declined only by 11% to RM474.7 million in 1HFY20 against RM535.9 million a year ago (“1HFY19”). Media Prima’s transformation plan, which involved a revision of revenue models, has defended the Group from a steeper revenue decline. The transformation also involves the reduction of cost inefficiencies from unnecessary work duplication. This resulted in loss after tax (“LAT”) narrowing by 10% to RM48.0 million in 1HFY20 against a net loss of RM53.6 million a year ago on the back of a 13% decrease in operating expenses in the six months period.
If exceptional items, namely the termination benefits charge of RM11.3 million, were excluded, net loss would have narrowed by 32% to RM36.7 million against the comparative period. This is evident in the improvement of earnings before interest, taxation, depreciation, amortisation and impairment of RM16.3 million as compared to RM10.0 million for the corresponding period despite the drop in revenue.
Group revenue for the three months period ended 30 June 2020 (“2QFY20”) decreased marginally to RM236.3 million against RM238.4 million in the previous quarter (“1QFY20”). Group’s losses narrowed by 40% to RM18.0 million in 2QFY20 compared to RM30.0 million in 1QFY20.
Media Prima’s home shopping segment posted a first half net profit of RM6.3 million, sharply reversing a net loss of RM7.6 million a year ago. CJ Wow Shop’s turnaround was achieved on the back of a 34% increase to RM152.8 million in 1HFY20 revenue compared to RM114.3 million in the corresponding period. This includes higher sales from its e-commerce and mobile commerce platforms which contributed over 52% of its total sales. To date, CJ Wow Shop has over 2 million customers and produces over 100 lives show slots every month.
Media Prima’s large broadcast reach — over 35% total audience share — has served as one of the key drivers to the success of its home shopping segment. CJ Wow Shop also leverages the Group’s overall mass reach and digital capabilities to target audiences with data-driven content and to strategically plan airtime and products.
Datuk Syed Hussian Aljunid, Group Chairman of Media Prima, said: “The turnaround in CJ Wow Shop’s performance underscores the success of our home shopping venture that we built four years ago. The uncertainty that arose during the Covid-19 pandemic was a trying time for our operations however, as an essential service provider during the movement control order, it became an opportunity to capture new business opportunities. CJ Wow Shop gained from the higher broadcast viewership, which also prompted new customers and greater sales from our ecommerce and mobile commerce platforms. We have built a strong foundation for this segment and remain focused on honing this competitive edge.”
The Group recently revealed a new identity for Media Prima Digital and REV Asia — REV Media Group — as part of its corporate rebranding initiatives and to streamline business processes and functions. REV Media Group represents over 30 top authority brands and reaches out to more than 15 million people every month.
Dato’ Iskandar Mizal Mahmood, Group Managing Director of Media Prima, said: “Although our industry was heavily impacted by the economic effects of the Covid-19 pandemic, our commerce and digital platforms experienced a surge in traffic as more Malaysians go online. We believe these two segments will be areas of significant growth for the Group. As Malaysia’s largest integrated media company, we are confident that spending on advertising will return as businesses adapt to the new normal and reconnect with consumers.”
Dato’ Iskandar added: “Results of the transformation exercise which includes consolidation of all advertising functions for the Broadcasting, Publishing and Content Creation business segments under Media Prima Omnia beginning April 2020 are positive. Moving forward, the Group will further streamline marketing functions and revenue. Commercial and radio airtime activities from Media Prima Television Networks and RIPPLE will be consolidated under Broadcasting. Nonetheless, we anticipate tough economic conditions to persist and we will continue to implement measures to improve operational efficiencies with prudent cost-management without sacrificing the quality of our offerings.”
END OF PRESS RELEASE
For further information, kindly contact:
Media Prima Berhad at +603 1300 300 672 (ext. 8949), [email protected] or +603 2724 8949
Zasman Asna at [email protected] or +6019 471 7531