KUALA LUMPUR (Aug 13): Media Prima Bhd’s net profit rose 22.6% for its second quarter ended June 30, 2015 (2QFY15) to RM43.94 million from RM35.83 million a year ago, on lower operating expenses and finance costs.

Consequently, earnings per share rose to 3.96 sen from 3.24 sen in 2QFY14, according to its filing to Bursa Malaysia today.

Its latest quarterly revenue, however, dipped 5.9% to RM365.82 million from RM388.58 million.

The media group also declared a first interim single-tier dividend of 3 sen per share, payable on Sept 30. The stock will trade ex-dividend on Sept 9.

For its cumulative six months (1HFY15), Media Prima’s net profit was largely flat at RM62.83 million compared with RM62.85 million in 1HFY14.

1HFY15 revenue, however, declined 6.4% to RM695.21 million from RM742.68 million previously, due to sluggish advertising spending and laclustre macroeconomic sentiment.

For the 1HFY15 period, year-on-year, its television network revenue was lower by 5% and profit after tax declined by 14%, while print media revenue and net profit slipped 8% due to lower advertising and circulation, as well as losses from an associate.

Outdoor media was least affected, with a decline of less than 1% in revenue and net profit, but radio network’s revenue slid 15% and its net profit fell 26%.

Digital media’s revenue fell 34% due to transfer of several business operations to other platforms within the group, but net profit went up 56% on recharging of digital support costs to other platforms.

Content creation saw 25% higher revenue on higher content sales to international customers. Coupled with savings in overheads, net profit for this segment more than doubled.

Moving forward, the group said the current business environment is a challenge as lacklustre advertising expenditure and market uncertainties are set to remain.

“However, we are hopeful that the impact of the goods and services tax (GST), since its implementation on April 1, will likely fade in the second half of 2015 as businesses and consumer spending take a breather post-GST,” it said.

Meanwhile, it will continue expanding its multi-platform content, while managing costs and improving operational effectiveness and efficiency.

Barring any unforeseen circumstances, it remains cautiously optimistic about its financial performance for 2015.
Media Prima (fundamental: 1.95; valuation: 2) closed unchanged today at RM1.14, for a market capitalisation of RM1.25 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.)