Higher revenue swings Media Prima back into the black in 2Q

Higher revenue swings Media Prima back into the black in 2Q
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KUALA LUMPUR (Aug 26): Media Prima Bhd posted a net profit of RM13.42 million in the second quarter ended June 30, 2021 (2QFY21), from a net loss of RM20.11 million a year ago, on the back of higher revenue generated.

Quarterly revenue rose 23.77% year-on-year (y-o-y) to RM292.45 million from RM236.28 million, contributed by higher advertising revenue amid higher advertising spending during the Hari Raya festive season, its bourse filing showed.

Earnings per share (EPS) stood at 1.21 sen, compared with losses per share (LPS) of 1.81 sen a year ago.

On a quarter-on-quarter basis, the group's net profit jumped 155.72% from RM5.25 million in 1QFY21, while revenue was up 14.9% compared with RM254.53 million.

Media Prima's y-o-y revenue growth was led by its integrated advertising solution platform, Omnia, which grew by 78% on higher advertising revenue. This was in tandem with broadcasting and publishing revenue expanding by 75% and 47%, respectively, as well as a 10% uptick in digital media.

For the first half, the group posted a cumulative net profit of RM18.66 million, versus a net loss of RM49.65 million recorded in the previous January-June period.

EPS stood at 1.68 sen, in contrast with LPS of 4.48 sen.

Six-month revenue increased 15.22% to RM546.98 million from RM474.71 million previously.

Commenting on its financial results, its group chairman Datuk Seri Dr Syed Hussian Aljunid said in a statement: "Our results mark yet another strong performance from the group with our fourth consecutive quarterly profit. We also recorded stronger advertising revenue despite the tougher economic conditions exacerbated by the pandemic.

"We are pleased with the success of our sales team at Media Prima Omnia, who have illustrated their strength in not just selling advertising space, but in providing sales solutions that cater to the needs of clients. We believe this uptrend in advertising expenditure will continue for the remaining quarters of the year in view of the phased reopening of the economy."

Nonetheless, Syed Hussian said the group is cautious about the challenges for the remainder of 2021, and will keep a close watch on operational efficiencies while honing its competitive advantages.

Its group executive director Rafiq Razali said the group is pleased with its 1HFY21 performance with encouraging signs of recovery for some segments.

"Advertising revenue increased across the group, particularly in television advertising. Our publishing segment posted its first quarterly profit since 2018 and we are committed to sustaining this position through continuous cost optimisation initiatives and sourcing for more printing contract opportunities. We also continued to broaden our audience base through our recent landmark deal with Disney+ Hotstar, making our content more accessible for fans of local dramas and films.

"In our mission to stay relevant, we believe that the changes made within our broadcasting segment — television and radio — will deliver audiences better and refreshed entertainment content and experience. Overall, we expect positive growth to continue in the remaining months of the year," Rafiq added.

Media Prima closed 2.5 sen or 5.05% higher at 52 sen, valuing the group at RM577 million.

Lam Jian Wyn