KUALA LUMPUR (May 22): Cost reduction and higher revenue have helped Utusan Melayu (Malaysia) Bhd narrow its net loss position in the first quarter ended March 31, 2018 (1QFY18).

Net loss shrank to RM5.85 million from RM22.84 million a year ago, the Malay-language newspaper and magazine publisher showed in a Bursa Malaysia filing today.

It said total cost dropped 4.2% year-on-year, while revenue grew 33.7% y-o-y to RM55.51 million, from RM41.51 million, driven largely by distribution of its e-learning product Tutor guru and its e-paper.

Utusan, which publishes four newspapers (Utusan Malaysia, Mingguan Malaysia, Kosmo! and Kosmo! Ahad) and magazines (like Wanita, Mastika and Saji) said the group has restrategised its publishing, distribution and advertisement segment, in view of recent developments after the 14th general elections.

“The board and the management have expressed their commitment to adopt a more balanced reporting, but to remain being critical in championing various issues involving national sovereignty and diversity.

“The board is also committed to ensure its core business, which is the publishing of newspapers, remain relevant, besides ensuring aggressive transformation towards digital platform," the group said.

Utusan has also reaffirmed and intensified its efforts to rationalise its operating costs, especially staff costs, which represents almost 50% of its total costs.

Utusan shares slid 2 sen or 7.4% to close at 25 sen today, giving it a market capitalisation of RM26 million. 

Since Pakatan Harapan's historic win in GE14, Utusan shares have shed 19% from its closing price of 31 sen on May 8. In the past 12 months, Utusan has about halved its market value, as its share price fell 51.5%.