KUALA LUMPUR (May 30): An impairment of goodwill, plant and machinery as well lower advertising revenue dragged Media Chinese International Ltd (MCIL) into a net loss of RM77.1 million in its fourth quarter ended March 31, 2018, compared to a net profit of RM3.2 million in the corresponding quarter last year.

This was despite a 1.84% uptick in revenue to RM245.46 million due to a favourable currency impact on its Malaysian printing and publishing segment, MCIL said in a filing to Bursa Malaysia today.

Without the foreign exchange impact, its Malaysian publishing and printing segment would have registered a 6.3% decline in turnover.

Earnings were affected by lower advertising revenue from its print publications, although this was partly cushioned by higher turnover from its digital business as well as savings from cost containment measures.

"Excluding non-cash charges, the segment's result fell by 9.6% year-on-year to US$6.9 million (RM26.69 million) from US$7.58 million (RM29.28 million) in the prior year quarter on a comparable basis," said the group, which has a dual-listing on the Hong Kong Stock Exchange.

The media group has proposed an interim dividend of 0.74 sen per ordinary share for the quarter against 1.39 sen previously.

MCIL's publishing and printing segments in Hong Kong, Taiwan and China as well as North America also saw a decrease in turnover amid slow economic growth. However, the listing of the group's associate Most Kwai Chung Ltd in Hong Kong boosted profit before tax in the segment to US$965,000 from a loss before tax of US$2.96 million a year earlier.

In the travel segment, turnover declined 4.5% on the back of increased competition by airlines and other industry players.

For the full financial year, MCIL recorded a net loss of RM44.39 million against a net profit of RM58.55 million a year earlier. Revenue declined 5.82% year-on-year to RM1.1 billion from RM1.17 billion.

Going forward, MCIL said it expects the challenging operating environment to continue amid weak consumer sentiment and the rising cost of doing business. Apart from the subdued businesses of its advertisers, newsprint prices are escalating due to a supply shortage.

"Nevertheless, we will continue our efforts in converging our print with our digital businesses and intensify our cost cutting efforts, particularly in streamlining our printing process in Malaysia," MCIL said.

It closed 0.5 sen or 1.7% lower at 29 sen today for a market capitalisation of RM489.3 million.