Media Prima 3Q net profit falls 39% to RM7.63 mil amid lower home shopping revenue

Media Prima 3Q net profit falls 39% to RM7.63 mil amid lower home shopping revenue
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KUALA LUMPUR (Nov 25): Media Prima Bhd’s net profit for the third quarter ended Sept 30, 2021 (3QFY21) fell 38.63% to RM7.63 million, from RM12.43 million a year earlier, when there was a one-off recognition of rental rebates amounting to RM6.9 million.

Earnings per share fell to 0.69 sen from 1.12 sen, the media group's Bursa Malaysia filing showed.

Quarterly revenue declined 4% to RM257.31 million, from RM268.77 million in the same quarter last year, mainly due to lower home shopping revenue.

On a quarter-on-quarter basis, net profit fell from RM19.33 million in 2QFY21, as revenue dropped 12% from RM292.45 million.

For the cumulative nine-month period ended Sept 30, the group returned to the black with a net profit of RM26.29 million, from a net loss of RM37.22 million in the previous corresponding period, while revenue rose 8.18% to RM804.29 million from RM743.48 million.

Looking ahead, the group said it intends to expand its content reach and availability, given the growth in streaming and increased presence of over-the-top digital media platforms, in line with the evolving media consumption trends in Malaysia.

“With the gradual recovery of the Covid-19 situation in Malaysia and as the entire country moves into Phase Four of the National Recovery Plan, the group expects an improvement in advertising spending towards the end of the year.

“While the group remains upbeat on its prospects moving into the fourth quarter of the year, cost and operating efficiency remain a key area that shall continually be monitored and assessed,” it added.

Shares in Media Prima settled five sen or 1.00% lower ao 49.5 sen on Thursday (Nov 25), valuing the group at RM549 million.

S Kanagaraju