Friday 29 Mar 2024
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KUALA LUMPUR (May 21): Media Prima Bhd posted a fifth straight quarterly loss as it continued to record declining advertising expenditure (adex).

Media Prima’s net loss narrowed to RM29.54 million, representing a loss per share of 2.66 sen, in the first quarter ended March 31, 2020 (1QFY20) from RM40.41 million or 3.64 sen per share a year ago, its stock exchange filing showed.

The group said savings achieved from cost management initiatives had been able to cushion the impact of the current pandemic through efficient structuring of the group.

Quarterly revenue inched down 0.28% to RM238.44 million from RM239.1 million in 1QFY19, as it recorded lower revenue from television network (down 8%), publishing (down 7%), Out-of-Home (down 3%) and radio network (plunged 56%).

However, the overall impact was offset by the better revenue contributed from digital media (up 11%), content creation (up 13%), and its home shopping network (up 18%).

In a separate statement, its group chairman Datuk Syed Hussian Aljunid said the enforcement of the Movement Control Order (MCO) to curb the spread of COVID-19 has also impacted Media Prima in the form of lower advertising take-up, despite the fact that it was allowed to operate as it was deemed an essential service.

“Nonetheless we continue to leverage our proactive business continuity initiatives and digital capabilities to mitigate the impact of COVID-19. We will continuously review them to ensure the group’s sustainability during these challenging times,” he added.

Meanwhile, its group managing director Datuk Iskandar Mizal Mahmood said the group’s next phase of transformation involves improving costs and operational efficiencies while delivering more effective solutions across their media platforms, and that its latest set of quarterly results show that it is on its way to becoming a more resilient company.

Nonetheless, the group must undertake mitigation measures to stabilise itself due to the pandemic, he said.

“While the group continues to defend Media Prima’s traditional businesses, digital and commerce remain our key growth areas. We will continue to find new ways to leverage the strengths of our traditional media brands to meet evolving consumer trends while capitalising on the demand for more digital products,” he said.

Shares price of Media Prima closed half a sen or 3.33% higher at 15.5sen, giving it a market capitalisation of RM171.93 million. There were some 8.73 million shares traded.

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