KUALA LUMPUR, 21 May 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 31 March 2020 (“1QFY20”).
The Group’s businesses continued to be pressured by industry challenges in addition to the impact of the COVID-19 pandemic on the economy. Nevertheless, Media Prima posted a revenue of RM238.4 million in 1QFY20 which represents a marginal decline from RM239.1 million in the corresponding period (“1QFY19”). Reflective of its cost management initiatives, the Group narrowed its net loss after tax (“LAT”) to RM30.0 million in 1QFY20 compared to a LAT of RM42.8 million in 1QFY19.
Group digital revenue improved by 9% to RM18.9 million on the back of a 12% digital advertising growth against the comparative period. In the period under review, Media Prima remained the most popular choice for mobile content in Malaysia, and has the nation’s third highest digital audience reach behind Google and Facebook.
Commerce revenue grew 24% in 1QFY20, driven by Media Prima’s home shopping network CJ Wow Shop which recorded a 18% revenue increase and 27% increase in customers. CJ Wow Shop has also expanded its online reach with its web and mobile platforms contributing more than 40% of its 1QFY20 total sales.
Group traditional revenue dropped by 7% due to cautious spending by advertisers. Circulation revenue improved by 12% for the three months under review, reflecting the positive outcome of measures undertaken to improve efficiency in this segment. Media Prima Television Networks remained Malaysia’s most watched broadcast channels with a 36% total audience share and 49% prime time audience share in 1QFY20. Primeworks Studios registered a 13% increase in revenue mainly due to a successful film release and higher advertiser content revenue from external productions in 1QFY20.
Datuk Syed Hussian Aljunid, Group Chairman of Media Prima, said: “The enforcement of the Movement Control Order (“MCO”) to curb the spread of COVID-19 has impacted several businesses. While Media Prima was deemed an essential service to continue operating during the MCO, our businesses were not spared from the impact of lower advertising take-up during these uncertain times. Nonetheless we continue to leverage our proactive business continuity initiatives and digital capabilities to mitigate the impact of COVID-19. We will continuously review them to ensure the Group’s sustainability during these challenging times.”
In 1QFY20, Media Prima kicked-off two new businesses — Media Prima Omnia Sdn Bhd (“Omnia”) and Print Towers Sdn Bhd (“Print Towers”) — to generate new revenue and optimise available capacity within the Group. Omnia spearheads the Group’s advertising sales function while Print Towers, formed out of The New Straits Times Press Production and Distribution unit, will operate as a standalone printer.
Dato’ Iskandar Mizal Mahmood, Group Managing Director of Media Prima, said: “Our next transformation phase involves improving costs and operational efficiencies while delivering more effective solutions across our media platforms. We believe that our 1QFY20 performance demonstrates that we are heading in the right direction to become a more resilient company. Nonetheless, the impact of the COVID-19 pandemic will require us to undertake mitigation measures to stabilise the Group. While the Group continues to defend Media Prima’s traditional businesses, digital and commerce remain our key growth areas. We will continue to find new ways to leverage the strengths of our traditional media brands to meet evolving consumer trends while capitalising on the demand for more digital products.”
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For further information, kindly contact:
Media Prima Berhad at +603 1300 300 672 (ext. 8957), [email protected] or +603 2724 8957
Zasman Asna at [email protected] or +6019 471 7531