KUALA LUMPUR, 26 August 2021 – Media Prima Berhad (“Media Prima” or the “Group”) today posted a profit after tax (“PAT”) of RM12.7 million for the three months ended 30 June 2021 (“2QFY21”), representing a positive swing from a loss after tax (“LAT”) of RM18.0 million in the comparative quarter (“2QFY20”). This was achieved on the back of a 24% increase in Group revenue to RM292.4 million in 2QFY21 against RM236.3 million in 2QFY20, driven by higher advertising revenue despite the continued challenges linked to the nationwide lockdown due to resurgence of Covid-19 cases.
For the six months ended 30 June 2021 (“1HFY21”), the Group recorded a PAT of RM16.8 million against a LAT of RM48.0 million in the comparative period (“1HFY20”). Group revenue increased by 15% to RM547.0 million in 1HFY21 from RM474.7 million in 1HFY20. The Group’s stronger performance is attributed to higher advertising revenue which increased by 22% in 1HFY21 from RM280.7 million in 1HFY20, led by the success of its integrated sales business Media Prima Omnia.
Revenue from Media Prima’s broadcasting segment increased by 43% in 1HFY21 against the comparative period, led by a significant growth in television advertising revenue in 1HFY21 against 1HFY20. Media Prima Television Networks remains Malaysia’s leading television network, commanding over 35% of television audience share.
Revenue from the Group’s digital arm, REV Media Group (“REV Media”), grew by 11% to RM41.7 million in 1HFY21 against RM37.7 million in the corresponding period on the back of strong growth in advertising revenue in 1HFY21 against 1HFY20.
Media Prima’s out-of-home advertising business, Big Tree, unveiled its largest digital out-of-home media, CuBig @ KLCC Junction, which offers anamorphic content capabilities for audiences to view life-like, 3D visuals on extensive digital screen dimensions. CuBig @ KLCC Junction garnered full occupancy in 2QFY21, with some clients occupying the space until the end of 2021.
Despite the continued challenges affecting the industry, the Group’s publishing segment, The New Straits Times Press (“NSTP”), defended its 1HFY21 overall revenue. It posted a slight revenue decrease of 4% due to lower newspaper sales, but higher newspaper printing and distribution revenue. For 2QFY21, NSTP posted a PAT of RM1.1 million, driven by a 50% increase in advertising revenue against 2QFY20 and supported by a more optimal cost structure.
In content sales, Media Prima recorded RM20.7 million in 1HFY21 revenue from RM5.0 million in the corresponding period. This follows Media Prima Television Networks and Primeworks Studios’ collaborations with popular streaming platforms Disney+ Hotstar, iQiyi and WeTV.
In commerce, revenue from WOWSHOP reduced marginally by 1% in 1HFY21 against the corresponding period, as consumer spending habits towards home shopping remain strong. WOWSHOP posted a PAT of RM4.5 million for 1HFY21. Overall, this is WOWSHOP’s sixth consecutive profitable quarter since 1QFY20. In 2QFY21, WOWSHOP registered over 169,000 new customers, bringing it to a total of 2.8 million customers since its launch in 2016.
Datuk Seri (Dr) Syed Hussian Aljunid, Group Chairman of Media Prima, said: “Our results mark yet another strong performance from the Group with our fourth consecutive quarterly profit. We also recorded stronger advertising revenue despite the tougher economic conditions exacerbated by the pandemic. We are pleased with the success of our sales team at Media Prima Omnia, who have illustrated their strength in not just selling advertising space, but in providing sales solutions that cater to the needs of clients. We believe this uptrend in advertising expenditure will continue for the remaining quarters of the year in view of the phased reopening of the economy. Nonetheless, we are cautious of the challenges in the remainder of 2021, and will keep a close watch on operational efficiencies while honing our competitive advantages.”
Subsequent to the period under review, Media Prima focused on unlocking synergies and leveraging the strengths of its media businesses. In July, Media Prima Omnia launched its #KitaMalaysia SME packages, in tandem with this year’s National Day celebrations, to promote homegrown products and services through the Group’s platforms.
More recently, the Group rebranded its radio segment as Media Prima Audio to strengthen its standing as a leading radio network. This involved the rebranding of all radio stations and restrategising their content and talent line-ups. Similarly, to reaffirm its standing as a leading television network, Media Prima Television Networks refreshed its scheduling strategy for TV3’s Morning Primetime and TV9’s Early Evening Primetime to keep up with viewers’ demands.
Rafiq Razali, Group Executive Director of Media Prima, said: “We are pleased with our 1HFY21 performance — despite the impact of Covid-19, our momentum is strong and we see encouraging signs of recovery for some segments. Advertising revenue increased across the Group, particularly in television advertising. Our publishing segment posted its first quarterly profit since 2018 and we are committed to sustaining this position through continuous cost optimisation initiatives and sourcing for more printing contract opportunities. We also continued to broaden our audience base through our recent landmark deal with Disney+ Hotstar, making our content more accessible to fans of local dramas and films.
“In our mission to stay relevant, we believe that the changes made within our broadcasting segment — television and radio — will deliver audiences better and refreshed entertainment content and experience. Overall, we expect positive growth to continue in the remaining months of the year.
“On the humanitarian front, we remain committed to helping communities and individuals in-need through the public-funded Media Prima-NSTP Humanitarian Fund. In 2QFY21, RM2.7 million was collected from which RM1.5 million was disbursed to causes which included funding for surgical procedures for the needy and purchasing top loading vaccine refrigerators for the Malaysian Armed Forces in assisting the national Covid-19 immunisation program. As we continue to grow our business, we will also increase our efforts to support more communities and individuals.”
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