KUALA LUMPUR (Nov 29): Media Prima Bhd's third-quarter net loss narrowed by 7.6% year-on-year (y-o-y), on lower restructuring expenses and higher other operating income.

Net loss for the three months ended Sept 30, 2017 (3QFY17) stood at RM101.09 million compared to RM109.36 million a year ago. Loss per share also narrowed to 9.11 sen in 3QFY17 from 9.86 sen in 3QFY16.

Quarterly revenue, however, fell 8.9% to RM288.51 million from RM316.76 million, on lower advertising and newspaper sales as the shift to digital media significantly affected the group's traditional media business.

For the cumulative nine months (9MFY17), Media Prima's net loss quadrupled to RM272.46 million from RM64.19 million, which it blamed on the impairment of investment in an associate in June and the early retirement scheme payment in August.

Revenue also dropped 8.3% to RM889.48 million in 9MFY17 from RM970.37 million a year ago, on lower advertising and newspaper sales.

"While the group has ventured into new digital and consumer-based business initiatives to complement its traditional media segments, these initiatives are still undergoing a gestation period," it said in a filing with Bursa Malaysia today.

Media Prima Television Networks saw an 18% y-o-y decline in revenue as weak advertising expenditure (adex) continues to affect the free-to-air (FTA) television segment, leading to a net loss of RM55.2 million in 9MFY17 against a net profit of RM21 million a year ago.

On its print media business, Media Prima said it remains challenging as revenue declined by 19% y-o-y, attributed to lower newspaper advertising and circulation revenue despite the encouraging performance of its digital properties.

Media Prima Radio Networks' 9MFY17 revenue dipped by 5% y-o-y, while its net profit declined by 30% y-o-y due to lower adex.

As for its digital media business, revenue was up 41% y-o-y due to higher digital services revenue contributed by Rev Asia Bhd, which it had acquired in August this year.

Going forward, Media Prima said the remainder of the year will continue to see adex and media consumption continue to shift towards digital.

"The FTA TV segment is expected to stay pressured despite normally being the strongest period of the year for adex utilisation. Nevertheless, the television network's diversification initiatives, notably CJ WOW SHOP home shopping and tonton video-on-demand, are showing progress while still in gestation period," it said.

The print media segment will continue its cost optimisation initiatives, given the challenging outlook of the traditional print segment, it added.

In a separate statement, Media Prima said it is optimistic that the business initiatives launched under the group's business transformation plan in 2016 will be the catalyst for future growth.

"We believe the plan will enable Media Prima to improve our cost structures and create value in the short and medium terms," its group chairman Tan Sri Ismee Ismail said.

"We have also ventured into new markets abroad, which is another important component of our transformation plan. The group has extended its consumers services such as tonton into Singapore and Brunei, while Primeworks Studios has been selling video content to global OTT providers such as Netflix and Iflix," said its group managing director Datuk Kamal Khalid.

He added that while the revenue contributions from the new digital and commerce initiatives have yet to offset the decline in revenue by Media Prima's traditional businesses, the group believes that it is a step in the right direction.

Media Prima shares closed up 1.5 sen or 2.21% at 69.5 sen today, bringing a market capitalisation of RM770.89 million.