KUALA LUMPUR (Aug 15): Media Prima Bhd said it might trim its workforce again, as the group explores further cost-saving measures to mitigate the impact of lower revenue, according to CIMB Investment Bank Bhd. 

CIMB analyst Mohd Shanaz Noor Azam wrote in a note today that Media Prima said this during an analyst briefing on Media Prima's second quarter and first half results.

"No surprises from Media Prima’s 1H17 results briefing, but the group shared that it is exploring further cost savings initiatives, given the decline in group revenue. 

"For example, it plans to trim down its workforce, in order to rationalise the group’s cost structure. To recap, Media Prima carried out a mutual separation scheme in 2014, which effectively reduced the group headcount by about 10%," Mohd Shanaz said.

Yesterday, Media Prima said it posted a net loss of RM132.91 million in the second quarter ended June 30, 2017 (2QFY17), versus a net profit of RM27.92 million a year earlier. Revenue fell to RM328.77 million, from RM349.55 million.

Media Prima said 1HFY17 net loss stood at RM171.37 million, compared with a net profit of RM45.16 million a year earlier. Revenue was lower at RM600.97 million, versus RM653.61 million in 1HFY16.

Today, analysts said Media Prima's 1HFY17 financial performance was below expectation.

Hong Leong Investment Bank Bhd analyst Sia Ket Ee wrote in a note that Media Prima's core net loss at RM37.3 million was "not comparable to ours and consensus full year (net profit) forecasts of RM70m and RM40m respectively."

CIMB's Mohd Shanaz said: "Media Prima’s 1H17 results were below our and consensus expectations, due to lower-than-expected adex (advertisement expenditure) and higher operating cost for digital business initiatives."