KUALA LUMPUR (Feb 25): Media Prima Bhd returned to the black with a net profit of RM18.84 million for the fourth quarter ended Dec 31, 2020 (4QFY20), from a net loss of RM104.46 million a year ago, underpinned by lower operating expenses achieved through its cost optimisation initiatives. This is the media group’s second consecutive quarterly profit for the financial year ended Dec 31, 2020 (FY20). 

Its quarterly revenue, however, slipped 2.1% to RM298.09 million, from RM304.63 million a year ago, its filing to Bursa Malaysia showed.

The drop in revenue was dragged mainly by broadcasting and publishing segments.

The group’s broadcasting revenue declined by 12% against 4QFY19 due to lower television and radio advertising expenditure.

Meanwhile, its publishing revenue was lower by 26% against the corresponding quarter as a result of lower newspaper advertising and circulation revenue.

The group did not declare any dividend for the current quarter under review.

For FY20, the group’s net loss narrowed 90% year-on-year to RM18.38 million from RM177.85 million, driven by the group’s transformation exercise which contributed to lower operating expenses in FY20.

Its revenue, however, fell 6.3% to RM1.04 billion, from RM1.11 billion a year earlier.

The business units that shined in FY20 were mainly Media Prima’s digital and home shopping businesses. 

The group’s digital media arm, REV Media Group recorded a FY20 net profit of RM10.8 million versus RM1.7 million a year ago. 

Meanwhile, Media Prima’s home shopping unit recorded its first profit since its inception in 2016, posting FY20 net profit of RM10.2 million from a net loss of RM10.6 million a year earlier. Home shopping registered a 33% increase in revenue to RM308.9 million for FY20 from RM232.2 million a year earlier. 

Media Prima noted that its home shopping channel — WOWSHOP — registered 750,000 new customers in 2020, a 40% increase for the year, bringing it to a total of 2.3 million registered customers since its launch. 

In a separate statement, Media Prima group chairman Datuk Syed Hussian Aljunid said: “2020 was a uniquely challenging year for all of us. However, Media Prima stood strong during this turmoil. We are grateful to have been able to provide audiences with a source of comfort and connection, while continuing to make good progress with our businesses. Our performance during the third and fourth quarters of FY20 showcase the effectiveness of the group's business transformation exercise. Nonetheless, we are mindful of the risks we may encounter in the short to medium term arising from the Covid-19 pandemic, and will continue striving for operational efficiency."

Media Prima group managing director Datuk Iskandar Mizal Mahmood said: “Moving forward, I believe we have the right foundation to further grow our business in 2021 and beyond. While we continue to defend our traditional businesses, we will embark on targeted initiatives where revenue visibilities are clear and in line with known mega trends. We remain committed to improving operational efficiencies through unlocking synergies across its media platforms.”

Shares in Media Prima closed 1.5 sen or 2.8% higher at 55 sen, valuing the group at RM648.88 million.