Kuala Lumpur, 25 February 2015 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s leading integrated media company today announced its results for the financial year ended 31 December 2014.

Media Prima recorded revenue of RM1.5 billion and Profit After Tax (PAT) of RM76.6 million during the twelve months period under review. The Group recorded a reduction in revenue and profit after tax against previous corresponding year by 13% and 65% respectively due to market uncertainties, weak consumer sentiments and the tragic airline incidents that resulted in advertisers being more cautious over advertisement placed during the period. The year 2014 also ended with the worst flood the country had seen in many years.

The Group’s results also reflect the implementation of a Mutual Separation Scheme (MSS) exercise in the month of December 2014 as part of the Group’s rationalisation and consolidation plan. Excluding MSS, the normalised PAT stood at RM141.6 million.

Quarter-on-quarter comparison, Media Prima’s revenue in Q4 2014 increased marginally by 1% as compared to Q3 2014. However, profit after tax in Q4 2014 declined against the corresponding quarter of 2013 due to the MSS implementation.

Tan Sri Johan Jaaffar, Chairman of Media Prima said, “Media Prima’s results reflect the Group’s ability to remain resilient and deliver positive profit after tax margin for the year despite the increasingly competitive operating environment. Our media platforms continue to maintain its dominant leadership position in 2014 as a result of our long-term commitment to invest in quality content and strong engagement with our audience and customers”.

Tan Sri Johan added that Media Prima remains committed to deliver growth and value to its shareholders where the Group’s Board of Directors had recommended a final single tier dividend of 5.0 sen (2013: 5.0 sen) per ordinary share for the financial year ended 31 December 2014 which is subject to the approval of shareholders at the forthcoming Fourteenth (14th) Annual General Meeting of the Company. With the recommendation of the final single tier dividend, total dividends declared for the current financial year is 11.0 sen (2013: 14.0 sen) per ordinary share.

Dato’ Sri Amrin Awaluddin, Group Managing Director said, “We had anticipated 2014 would be a challenging year given the intense competition, market uncertainties and weaker consumer sentiments all impacted advertisement spending throughout the year. Given the circumstances faced, the Group aggressively embarked on a Group wide review of our internal efficiencies whilst managing costs prudently. The steps include the implementation of MSS to enable the Group to have an optimised work force moving forward”.

Dato’ Sri Amrin added that the Group’s media platforms performed well amongst consumers and provide the widest reach including on social media for advertisers to maximise their advertising investments. Media Prima Television Networks (MPTN) continues to command the largest viewership where ninety four out of the top hundred highest rated programmes for 2014 were aired on its networks. MPTN also has a strong following on social media with a combined total of 4.4 million followers on Facebook, Instagram and Twitter. In Print Media, NSTP registered an increase in combined readership to approximately 4.5 million readers from 4.4 million in 2013 whilst capturing the largest market share of Malaysia’s newspaper advertising expenditure with 34.2%. New Straits Times, Berita Harian and Harian Metro has 6.6 million number of followers reflecting the papers popularity amongst content seekers.
In Radio, Media Prima Radio Networks (MPRN) broadcasts to almost 4 million listeners each week with Hot FM ranked number two amongst Malay listeners below 25 years of age demographics, Fly Fm ranked the number two English radio station amongst urban demographics and one FM ranked number two Chinese radio station below 35 years of age demographics. MPRN has 5 million followers on popular social media applications. Online, Media Prima Digital recorded 735 million page views and 39 million video views for the year whilst popular video portal Tonton currently has close to 4.3 million registered users. The Group’s Out-of-Home media platform holds a commanding 44% market share in Malaysia through Big Tree Outdoor whilst Primeworks Studios continues to capture multiple awards for content produced throughout the year.

On prospects for 2015, the Group is bracing for another challenging year with the domestic economic outlook factored from lower GDP growth, prevailing low oil prices and the implementation of Goods and Services Tax (GST) in the year. In view of these challenges, the Group seeks to grow its non-traditional advertising revenue while consolidating its market share in core advertising revenue. At the same time, the Group will continue to manage and improve its costs by monitoring its key cost drivers, coupled with the implementation of Group wide cost management initiatives.
END

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