Media Prima returns to black in 3Q with RM12m net profit

Media Prima returns to black in 3Q with RM12m net profit
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KUALA LUMPUR (Nov 18): Media Prima Bhd has returned to the black with a net profit of RM12.43 million for the third quarter ended Sept 30, 2020 (3QFY20) from a net loss of RM24.16 million a year ago, thanks to improved revenue and lower operating expenses.

The group told the stock exchange that its revenue for 3QFY20 rose 1.21% to RM268.77 million from RM265.55 million a year ago.

Accordingly, earnings per share stood at 1.12 sen for the period, from a loss per share of 21.18 sen.

The group said it achieved its better profit after tax in the current quarter thanks to improved revenue and lower operating expenses of RM224.9 million against RM239.9 million in 3QFY19.

The group’s profit after tax also includes waivers on lease payments and rebates on licence fee amounting to RM9.7 million.

For the nine months ended Sept 30, 2020, the group’s net loss narrowed to RM37.22 million from RM73.4 million a year earlier. Its loss per share subsequently shrank to 3.36 sen from 6.62 sen.

Meanwhile, its revenue for the period fell 7.23% to RM743.48 million, from RM801.41 million a year earlier, due to the impact of the current challenging economic climate which has especially hurt advertising spending.

The decline in revenue was nevertheless offset by lower operating expenses incurred in the current period, it said.

Driven by the ongoing transformation exercise, the group said its earnings before interest, taxes, depreciation, and amortization improved by 75% while loss after tax reduced by 54% when compared to the comparative period.

Notwithstanding the recovery seen in 3QFY20, the group remains cautious on its performance for the remainder of the year due to prevailing uncertainties in the economy amid the pandemic.

“Nevertheless, the group remains committed [to] executing its strategies of offering integrated advertising solutions as we have seen increased demand in our digital advertising and advertiser content.

“The strong performance from our commerce business has provided us with opportunities to further improve the home shopping experience through signature programmes and enhanced e-commerce and mobile commerce platforms. The group shall continue to further improve operational efficiencies to strengthen our financial position,” it said.

Media Prima rose 1 sen or 5.88% to close at 18 sen today, valuing the group at RM199.66 million.

Lam Jian Wyn