KUALA LUMPUR, 25 February 2021 – Media Prima Berhad (“Media Prima” or the “Group”) today posted a profit after tax (“PAT”) of RM18.1 million for the three months ended 31 December 2020 (“4QFY20”), reversing a loss after tax (“LAT”) of RM106.3 million in the previous comparative quarter (“4QFY19”). The positive financial results marks Media Prima’s second consecutive quarterly profit after registering a PAT of RM11.8 million for the three month period ended 30 September 2020 (“3QFY20″). This reflects encouraging results of its business transformation efforts initiated in early 2020.
Despite unprecedented challenging environment, Media Prima defended its group revenue for the full year (“FY20”) at RM1.04 billion against RM1.11 billion in the corresponding year (“FY19”), a decline of 6%. Losses were significantly reduced by 90% to RM18.1 million in FY20 from a loss of RM185.5 million in FY19. This improvement is attributed to lower operating expenses achieved through cost optimisation initiatives.
The Group’s digital media arm, REV Media Group (“REV Media”) recorded a FY20 PAT of RM10.8 million from RM1.7 million a year ago. Full year revenue increased by 21% to RM90.1 million from RM74.4 million in FY19, an encouraging development following the consolidation of all Group digital assets under REV Media in order to achieve synergies and solidify its market position.
In commerce, WOWSHOP recorded a sterling performance going into profitability for the first time since its inception in 2016. It posted a FY20 net profit of RM10.2 million on the back of a 33% increase in revenue (RM308.9 million for FY20) against the previous year, fuelled by a combination of attractive product mix and the popularity of Media Prima Television Networks which commands over 36% of total audience share. WOWSHOP registered 750,000 new customers in 2020, a 40% increase for the year, bringing it to a total of 2.3 million registered customers since its launch. Sales from its e-commerce and mobile commerce platforms have grown to over 54% of its total sales in FY20.
Despite the movement restrictions due to the Covid-19 pandemic, the Group successfully staged the 33rd edition of Anugerah Bintang Popular BH (“ABPBH 33”) and the Lazada 11.11 Super Show virtually, with no audience and strict adherence to safety protocols during production. ABPBH 33 garnered a 43% television audience share, and over 700,000 views on YouTube compared to 104,000 views for the previous edition. The Lazada 11.11 Super Show was the Group’s third collaboration with the popular e-commerce business and represents one of the largest branded content initiatives in the country.
Media Prima has previously entered into collaborations with popular international platforms such as iflix, Netflix, and Viu. As streaming providers demand for more local content, the Group being the nation’s largest content provider has recently inked collaborations with iQiyi and WeTV.
In the spirit of #KitaJagaKita, Primeworks Studios and WAU Animation teamed up again with MISI: JUANG released in December 2020. The Ejen Ali short film, dedicated to frontliners and their heroic efforts to combat Covid-19, garnered over a million views in less than 24 hours after its launch.
Datuk Syed Hussian Aljunid, Group Chairman of Media Prima, said: “2020 was a uniquely challenging year for all of us. However Media Prima stood strong during this turmoil. We are grateful to have been able to provide audiences with a source of comfort and connection, while continuing to make good progress with our businesses. Our performance during the third and fourth quarters of FY20 showcase the effectiveness of the Group’s business transformation exercise. Nonetheless, we are mindful of the risks we may encounter in the short to medium term arising from the Covid-19 pandemic, and will continue striving for operational efficiency.”
Dato’ Iskandar Mizal Mahmood, Group Managing Director of Media Prima, said: “The strategic actions we have taken to transform the Group, driven by our dedicated team, made it possible to end the year on a positive note — our 4QFY20 marked our second consecutive profitable quarter while full year losses are significantly reduced. We demonstrated our resilience and creativity within the new normal with the successful virtual stagings of Karnival Jom Heboh and Anugerah Bintang Popular BH. It is the team’s steadfast will and agility in this fast changing environment that will fuel our success.
“On the community front, we launched the Bantuan Kemanusiaan Covid-19 fundraising campaign to assist our hospitals in treating patients affected by this pandemic. Thanks to the generosity of Malaysians, RM1.8 million benefitted over 20 hospitals around the nation. We are grateful to all donors both big or small, and committed to do more to help during these difficult times.
“Moving forward, I believe we have the right foundation to further grow our business in 2021 and beyond. While we continue to defend our traditional businesses, we will embark on targeted initiatives where revenue visibilities are clear and in line with known mega trends. We remain committed to improving operational efficiencies through unlocking synergies across its media platforms.”
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