KUALA LUMPUR (May 10): Media Prima Bhd is targeting to increase digital revenue contribution to the group to 20% this year by capitalising on its wide digital audience across the board.
Group managing director Datuk Kamal Khalid said the company is in a transformation journey which focuses on revenue diversification.
“Our financial year ended Dec 31, 2018 (FY18) results were a good indication that we are on the right path through our transformation strategies.
“The decline in traditional revenue was offset by higher revenue from our digital and commerce business,” he said in a statement after the annual general meeting here today.
In FY18, Media Prima’s revenue grew 25%, compared with a 14% growth in the preceding year, driven by its digital and commercial ventures.
The group’s digital revenue increased to RM87.9 million from RM 41.5 million, while in the commerce segment, home shopping platform, CJ WOW SHOP generated RM213.1 million in sales, a 65% increase from RM129.5 million in FY17.
“CJ WOW SHOP has made a commendable progress and we are cautiously confident that the segment will break even this year,” he said.
Meanwhile, speaking on the sidelines after the AGM, CJ WOW SHOP chief executive officer Kim Yang Hyun said Media Prima’s home shopping segment is targeting RM300 million in sales this year, an increase from the RM213.1 million sales in FY18.
He said CJ WOW SHOP’s customer base comprises 70% Malay, 30% Chinese and the plan is to expand the Chinese base to about 40%, while exploring into the English-speaking segment.
“Our capital expenditure (capex) was not much, and we expect to break even in the second half of this year or at the latest by next year. For now, we do not require additional capex,” he added. — Bernama