Kuala Lumpur, 12 May 2016 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s leading fully-integrated media group is aggressively seeking new opportunities to grow its non-traditional revenue streams.
Datuk Seri FD Iskandar, Group Chairman of Media Prima said, “The rapid changes in the media industry has presented the Group with various opportunities for new revenue streams while we consolidate our market share in the core advertising revenue. The Group had in 2016 launched a number of key ventures that are ‘Business to Consumer’ in nature such as our home shopping platform, CJ Wow Shop, the revamped online video streaming subscription service, “tonton”, plus our foray into the apps and games applications for mobile users.
“The Group’s anticipation of a prolonged period of market stagnation was proven true, with a flat or lower advertising revenue recorded by most of our media platforms. Within the media industry, factors such as customer fragmentation, technological advancements, shift in traditional advertising to digital media advertising and increased competition from global media players continued to challenge the Group during the first quarter of 2016.”
The Group recorded 1QFY16 revenue of RM304.1 million, a decline of 8% against the comparative quarter of 1QFY15 as core advertising revenue and newspaper sales declined by 5% and 23% respectively. Accordingly, Profit After Tax (PAT) stood at RM17.2 million against RM19.4 million in the previous corresponding period.
Echoing similar sentiment, Dato’ Sri Amrin Awaluddin, Group Managing Director of Media Prima said, “The expected outlook for 2016 remains challenging as market sentiment remain cautious in view of the current economic condition and the rising cost of living. The industry players are anticipating a single digit growth in Adex this year, as businesses struggle to optimise their advertising and promotion budgets.”
“Our new ventures in non-traditional media is set to slowly complement our existing traditional business, which is currently exposed to the unsettling economic and market sentiments,” added Dato’ Sri Amrin.
As the outlook for Adex remains challenging, Media Prima Television Network’s (MPTN) initiatives in the form of home shopping and video on demand services are expected to further augment its traditional delivery platforms and generate new revenue streams. The revamped “tonton”, Malaysia’s no. 1 video streaming portal with over 5.6 million registered users, and the redirection of 8TV’s entire urban content into Studio8, accessible exclusively online via YouTube, are expected to solidify MPTN’s dominant position amongst the Free-to-Air (FTA) local television channels.
Meanwhile, the recently launched Kool FM provides an opportunity for Media Prima Radio Networks (MPRN) to expand into the mature Malay radio segment. MPRN will continue to compete for listenership and also reach out to its audience, clients and agencies in the digital and social media space. MPRN has one of the largest social media presence with over 6.2 million users on digital applications for its four radio stations.
Big Tree Outdoor (“BTO”), Media Prima’s Out-Of-Home (OOH) advertising company will continue its strategy of growing its digital out-of-home solutions at key and premium sites and securing of new key concessions of rapid transit lines in 2016, which have contributed positively to the Group’s earnings in 2015. BTO currently holds 44% share in the OOH media solutions market.
In Print Media, The New Straits Times Press (M) Berhad (“NSTP”) continued to diversify its revenue streams while enhancing brand and content offerings. These include the launch of mobile friendly applications for New Straits Times, BH and Harian Metro as well as offering news content through digital platforms such as news website, ePaper, Google Play Newsstand as well as social media avenues like Facebook, Instagram, Twitter and YouTube. The Group also offers news and content through its digital interactive magazines ZIP, Tech Kingdom, Speed and Wheels and also Premium BH Plus.
In Content Creation, Primeworks Studios (“PWS”), Media Prima’s production company, will continue producing hit content for MPTN and external markets including for new digital platforms. Programmes produced by PWS dominated the Top 10 programmes with the highest viewers in Malaysia across all television channels in 2015. Content Creation is also banking on the success of BoBoiBoy The Movie, currently the highest grossing local animated film in Malaysia in which PWS’ distribution arm, Primeworks Distribution, has secured distribution rights.
Media Prima Digital (MPD) will leverage on the Group’s unique IPs to provide a platform for digital and mobile products and services. MPD through MP Labs, has released two digital apps and games using the Group’s unique IPs – the JJCM app, which is based on one of TV3’s longest running TV programme ‘Jalan Jalan Cari Makan’, and the game Ejen Ali: MATA Training Academy, which is currently enjoying overwhelming response, being downloaded more than 100,000 times within three weeks of its released in early March.
END
For further information, kindly contact:
Media Prima Berhad at: 603- 1300 300 672 Ext: 8949 or 03 – 2724 8949
Azlan Abdul Aziz at [email protected]/ or 6012-614 0522
www.mediaprima.com.my/http://twitter.com/MPBtalk
[divider style=”with-bottom-pointer” color=”#E7E7E7″]
About Media Prima
Media Prima Berhad (“Media Prima” or “The Group”) is the leading fully-integrated media company in Malaysia.
With a complete repertoire of media-related businesses including in Television, Print, Radio, Out-of-Home, as well as Content and Digital Media, Media Prima, which is listed on the Main Board of Bursa Malaysia, is also one of Malaysia’s Top 100 largest listed companies by revenue.
In addition to having equity interests in Malaysia’s leading free-to-air television stations namely TV3, 8TV, ntv7 and TV9, the Group also owns more than 98 percent of The New Straits Times Press (Malaysia) Berhad (NSTP), Malaysia’s largest publisher with three national newspapers; New Straits Times, BH and Harian Metro.
Through its digital media subsidiary, Media Prima Digital embraces technical innovation, digital solutions and creative strategies. It offers a holistic digital consultancy which encompasses creative solutions, diversified platform services, e-commerce expertise and is also involved in the development and incubation of mobile applications and games.
“tonton” is Malaysia’s #1 video streaming portal offering FREE, advertising supported content (AVOD) with over 5.6 million registered users and a growth of 22,000 registrants on a weekly basis. Its vision is to be the #1 SVOD and home of best content for Malaysians whereas its mission is to be the no. 1 online video site, a must have service for every Malaysian and Malaysian home, to be available everywhere and to prevent piracy.
In Radio, the Group is represented by four very popular radio stations namely Fly FM, Hot FM, one FM and Kool FM. Media Prima is also a market leader in Out-of-Home Advertising, represented by Big Tree Outdoor Sdn. Bhd., The Right Channel Sdn. Bhd., Kurnia Outdoor Sdn. Bhd., Gotcha and UPD Sdn. Bhd.
The Group also owns a content creation subsidiary, Primeworks Studios Sdn Bhd. It is today Malaysia’s largest production company, producing TV content and feature films since 1984 and 1994 respectively.
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