KUALA LUMPUR, 26 February 2020 – Media Prima Berhad (“Media Prima” or the “Group”), Malaysia’s leading fully-integrated media group, announced today its results for the financial year ended 31 December 2019.
Group revenue for the quarter ended 31 December 2019 (“4QFY19”) increased by 5% to RM304.6 million against RM290.9 million in the corresponding quarter last year (“4QFY18”). If exceptional items (“EI”) reported in both quarters were excluded, Media Prima would have posted a profit after tax (“PAT”) of RM9.7 million in 4QFY19 versus a loss after tax (“LAT”) of RM38.5 million in 4QFY18. The exceptional items included the execution of an internal restructuring exercise in 4QFY19, and a one-off gain from a sale and leaseback arrangement in 2018.
Economic and industry challenges continued to weigh down on the Group’s full-year financial performance in 2019 (“FY19”). Revenue declined by 7% in FY19 against the corresponding year, attributed to lower traditional advertising and circulation revenue which dropped by 11% and 12% respectively. Barring exceptional items, the Group’s LAT had narrowed by 35% to RM69.4 million in FY19 against RM106.0 million a year ago.
The Group’s digital and commerce segments registered a 4% revenue increase to RM320.2 million in FY19. Media Prima Television Network’s home shopping segment, CJ Wow Shop, recorded a 9% revenue increase to RM232.3 million and a 13% increase in quantity of items sold. Total customers increased by 13% in FY19 and by 1% year-on-year since 2016. In digital, Media Prima Digital’s REV Asia posted a 8% revenue increase to RM44.7 million in FY19, underscoring the success of its content marketing strategies.
Among the key achievements for Media Prima in 2019 is the record breaking success of one of the Group’s intellectual property, Ejen Ali. The hugely popular animated television series debut on the silver screens earned RM30.8 million at the box office, making it the highest-grossing Malaysian film in 2019, as well as the highest-grossing local animated film and third highest-grossing Malaysian film to date. The movie was also screened in Indonesia, Brunei and Singapore.
Datuk (Dr) Syed Hussian Aljunid, Group Chairman of Media Prima, said: “Our 4QFY19 performance gives us confidence that Media Prima is in a stronger position to enter the next phase of our business transformation efforts. As an integrated media group, we will continuously innovate to serve the evolving needs of our audiences and advertisers. This includes expanding its digital presence while executing new business opportunities that leverages its existing assets. Meanwhile, we remain focused on honing our competitive advantages while keeping a close watch on operational efficiencies. I am confident we have the right assets and team to execute on the opportunities ahead of us.”
Meanwhile, the Group also announced that it has concluded the first phase of its transformation plan, Odyssey, that started in 2016. In view of legacy issues and new technologies which had affected revenue from its traditional media businesses. Media Prima has been undertaking workable and sustainable options to restructure the Group. The first phase focussed on revenue diversification across three key areas — digital, commerce, and beyond Malaysia, and involved strategic acquisitions, and partnerships with global technology and media companies.
Media Prima believes that Odyssey has provided the necessary foundation for corporate recovery in the future as these initiatives have contributed greater revenue to the Group year-on-year. In 2019, Odyssey revenue reached RM318.0 million, contributing to 29% of the Group’s total revenue compared to RM176.4 million or 15% of total revenue in 2017.
Datuk Kamal Khalid, Group Managing Director of Media Prima, said: “Our significant investments in Odyssey has put the Group on a stronger foundation to compete in today’s fast-evolving digitally-driven media environment. Our rationalisation and restructuring will make us a leaner and more agile company, better suited to navigate the uncertainties ahead. We are equipped to face the future because of the energy and commitment of our team to transform Media Prima into a leading digital-first media company. As we move forward into the next decade, we will embark on the next phase of our business transformation that promises to continue delivering the best for our audience, advertisers and partners.”
For further information, kindly contact:
Media Prima Berhad at +603 1300 300 672 (ext. 8949), [email protected] or +603 2724 8949
Azlan Abdul Aziz at [email protected] or +6012 614 0522