KUALA LUMPUR (Nov 29): Lower contribution from the publishing and printing segment has dragged Media Chinese International Ltd’s net profit to RM12.39 million or 0.74 sen per share in the second quarter ended Sept 30, 2018 (2QFY18), a 11.25% year-on-year decrease, against RM13.96 million or 0.83 sen per share last year.

Another reason was dwindling gross advertising spend on print media, it said in a filing with Bursa Malaysia today, adding ad spend remains restrained, while newsprint prices are rising.

Revenue rose 7.25% to RM354.37 million in 2QFY18, from RM330.4 million last year.

The group declared an interim dividend of 0.72 sen per share for the financial year ending March 31, 2019 (FY19), payable on Dec 28.

For the cumulative six months (1HFY18), net profit rose 5.48% to RM24.98 million or 1.49 sen per share, from RM23.68 million or 1.41 sen per share a year ago, while revenue grew 9.15% to RM693.7 million, from RM635.54 million last year.

Looking ahead, the group expects the second half of FY19 to remain challenging.

“The subdued advertising spend in most of the markets it operates in, together with the upward trend of newsprint prices, will adversely impact the group’s results,” Media Chinese said, adding that the looming trade war between China and the USA will create further uncertainties in the global economy and hence, add pressure the group’s financial performance.

The group will continue its cost containment efforts, whilst developing and enhancing its digital content and platform capabilities. It will also focus on nurturing new revenue generating activities such as event management, and for the travel segment, will continue to design creative tour packages, especially to untapped destinations of interest.

Media Chinese closed half a sen or 2.5% higher at 20.5 sen today, for a market capitalisation of RM345.88 million. Over the past year, the counter has lost 48.1% from 39.5 sen.