Friday 29 Mar 2024
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KUALA LUMPUR (May 14): Media Prima Bhd’s net profit for its first quarter ended March 31 (1QFY15) declined 30% on-year to RM18.8 million or 1.7 sen per share from RM27.02 million or 2.45 sen per share previously, on “continuous market uncertainties” and dampened consumer sentiment ahead of the implementation of the goods and services tax (GST).

Revenue for the quarter fell 6% on-year to RM329.39 million from RM351.03 million in 1QFY14.

In its filing with the exchange today, Media Prima (fundamental: 1.65; valuation: 1.4) said it saw lower revenue and profit from across most of its segments, compared to the previous corresponding period.

These segments include the television network (revenue down 7%, profit after tax (PAT) down 56%), print media (revenue down 6%, on lower newspaper sales revenue), outdoor media (revenue up 2%, but PAT down 2% on provision for authority fees), radio network divisions (revenue down 18%, PAT down 37%), and digital media segment (revenue down 18% but loss improved 60%).

Content creation was the sole segment that saw higher revenue at RM7.2 million, with PAT up 36% on the back of increased revenue.

Going forward, the group expects the remainder of 2015 to be challenging following the GST imposition and the general uncertainty of the market, which is expected to affect business and consumer sentiments.

It expects advertising expenditure to remain flat in 2015 as consumers adjust to the new tax system and consumer sentiment gradually recovers.

“In view of these challenges, the group seeks to grow its non-traditional revenue while consolidating its market share in core advertising revenue.

“At the same time, the group continues to seek optimum manpower size, increase staff productivity through training, while managing costs effectively,” it said.

It will also continue to expand its multi-platform content to market beyond its TV Network, while concurrently enhancing its respective platforms’ business strategies.

Media Prima closed up 1 sen or 0.6% to RM1.67, bringing its market capitalisation to RM1.84 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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