Kuala Lumpur, 11 Aug 2016 – Media Prima Berhad’s (“Media Prima” or “The Group”) strategic efforts to grow its non-traditional revenue streams are starting to pay off – a 15 per cent increase in revenue is recorded in 2QFY16 compared with previous quarter. The launch of CJ Wow Shop, a venture undertaken by Media Prima Television Networks (“MPTN”) in April this year, has been a success with close to RM20 million in sales recorded for the first three months of operations.

Datuk Seri FD Iskandar, Group Chairman of Media Prima said, “The Group’s decision to introduce new ‘Business to Consumer’ offerings earlier in 2016 has proven to be timely as newspaper sales and advertising revenue from television and print continues to be challenging. This certainly speaks volume of the effectiveness of the Group’s ongoing non-traditional revenue diversification plans.”

He added that this year, the Group had invested in new initiatives to cushion the decline in advertising revenue and newspaper sales. These included the revamped ‘tonton’ (a subscription-based online video portal), newly launched FullAMark (educational portal), digital publications and mobile applications that are currently readily available for IOS and Android devices.

The new sources of revenue, particularly sales from CJ Wow Shop, has helped mitigate the decline in the traditional revenue segment, by 6 per cent drop in the Group’s revenue year-on-year, from RM695.2 million in 1HFY15 to RM653.6 million in 1HFY16. The Group recorded 349.5 million in revenue and RM24.4 million in PAT during 2QFY16, compared to RM365.8 million revenue and 42.3 million PAT registered in 2QFY15.

Dato’ Sri Amrin Awaluddin, Group Managing Director of Media Prima said, “While we are encouraged by the results of our new business initiatives, we are also pleased by the growth in revenue recorded by our Radio (12 percent), Television (3 per cent) and Out-of-Home (4 per cent) divisions despite the challenging economic environment and gestation period of the new initiatives. Nonetheless, the one-time implementation and start-up costs from home shopping and the launch of Kool FM impacted PAT for both our Television and Radio businesses. We will continue to grow our non-traditional revenue streams, whilst concurrently, defend the Group’s core traditional adex business and consolidate our market share within the core advertising revenue segment.”

He added that within the media industry, factors such as consumer fragmentation, technological advancements, the shift in advertisement to digital media and increased competition from global media players will continue to pose huge challenges to the Group. However, the Group is confident in facing the challenges with solid plans and business strategy.

MPTN is expected to continue benefitting from its diversification into home shopping, Video on Demand (VOD) and Multi-Channel Network (MCN). 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 some of the examples of the new business direction in this division rolled out this year. They are expected to solidify MPTN’s dominant position amongst the Free-to-Air (FTA) local television channels.

The outlook for Malaysian Print business remains challenging as adex remained subdued due to weak consumer sentiment given the uncertain economic outlook. The industry is also faced with declining circulation numbers partly attributed to the shift in readership trends due to technology and changes in consumers behaviour. As reported by the Audit Bureau of Circulations Malaysia, newspaper distribution, in general, recorded a decline of 12% for the period of July to December 2015 compared to the same corresponding period in 2014, affecting all English and vernacular newspapers.

As with any other newspaper companies, these challenges had affected Media Prima’s print business where The New Straits Times Press (M) Berhad (“NSTP”) ended the first six months of 2016 with reduced revenue of 18 per cent which impacted PAT to close at RM0.5 million compared to same corresponding period 2015. NSTP is continuously reviewing areas for improvements and undertaking cost management initiatives to improve effectiveness and efficiency.

The shift in consumer’s preference presents an opportunity for NSTP to continue focusing on delivering content through digital media to complement its traditional print publications. NSTP recorded more than 100 per cent growth in digital media revenue in 1HFY16, year-on-year. The launch of mobile friendly applications for New Straits Times, BH and Harian Metro as well as news content through digital platforms such as news website, ePaper, Google Play Newsstand including on social media avenues, offers seamless integration between traditional and new media for advertisers. NSTP’s foray into digital publications also includes digital interactive magazines ZIP, Tech Kingdom, Speed and Wheels, LET, Dhiya and also Premium BH Plus, all of which are expected to generate revenue through advertising and subscription. NSTP also plans to capitalise on its strong presence in the education sector after it had released FullAMark, an interactive learning portal targeting school children.

Big Tree Outdoor (“BTO”), Media Prima’s Out-Of-Home (OOH) advertising company will also continue growing its digital out-of-home solutions at key and premium sites whilst exploring new business opportunities. The recently secured advertising concession for the LRT Extension Line and other upcoming infrastructure projects provide new revenue potential for the platform. BTO currently holds 44% share in the local OOH media solutions market.

Media Prima Radio Networks (“MPRN”) meanwhile, is looking forward to the upcoming listenership survey result by GFK to seek new ground in the radio universe. Its InterAds2 segmentation roll-out from mid last year has proven a hit among advertisers as clients start seeing the value MPRN has brought to their investments.

In Digital Media, Media Prima Digital (“MPD”) will continue to support all digital initiatives within the Group. The platform has moved into digital consultancy as well as mobile apps and games. MPD’s first digital app, Ejen Ali has achieved over 260,000 downloads since it’s launched in March this year. With more apps in the pipeline, the applications would enable MPD to generate revenue through in-app advertising and purchase.

In Content Creation, Primeworks Studios (“PWS”), Media Prima’s production company has developed another unique business proposition of being a content distributor. This was reflected in its recent success distributing box office hits notably BoBoiBoy The Movie and Ada Apa Dengan Cinta 2. The platform is also looking at opportunities to expand its presence in the content industry by tapping into the needs of digital media and streaming services for content production.


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

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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