Thursday 28 Mar 2024
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KUALA LUMPUR(Aug 14): Media Prima Bhd reported  a second straight quarterly loss today, blaming it on a RM142.4 million impairment of its investment in associate Malaysia Newsprint Industries Sdn Bhd (MNI).

The group posted a net loss of RM132.91 million for its second financial quarter ended June 30,2017 compared with a net profit of RM27.92 million for the previous corresponding quarter. Earnings per share showed a loss of 11.98 sen against a profit of 2.52 sen previously.

MNI, a 21.36% indirect associate of Media Prima via its 98.17%-owned subsidiary The New Straits Times Press (M) Bhd, had volunteered to wind up on Aug 1 after incurring losses for the past three years due to declining newsprint demand.

For the first quarter, Media Prima had reported a net loss of RM38.47 million versus a net profit of RM17.25 million a year earlier amid subdued advertising expenditure.

Media Prima reported a 5.9% drop in second quarter revenue to RM328.77 million, from RM349.55 million a year earlier.

No interim dividend was announced in the group’s filing with Bursa Malaysia today.

For the first half of FY17, Media Prima reported a net loss of RM171.37 million or 15.45 sen per share, from a net profit of RM45.16 million or 4.07 sen per share in the first half of FY16.

Revenue for the six months fell 8% to RM600.97 million from RM653.61 million a year ago, due to lower advertising and newspaper sales as the shift to digital media significantly affected the group’s traditional media business.

Media Prima said that 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 added that the second half of the year is expected to remain challenging as adex and media consumption continues to shift towards digital.

Media Prima also announced that its former group managing director, Datuk Sri Amrin Awaluddin, has been redesignated from his position as executive director to the role of non executive director, with effect from Aug 21.

Amrin had stepped down as group managing director of Media Prima effective Aug 1.

Media Prima shares closed down two sen or 2.6% today to 74.5 sen, giving it a market capitalisation of RM842.99 million.

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