KUALA LUMPUR: Utusan Melayu (M) Bhd saw its net loss widened 852.2% to RM44.32 million in the fourth quarter of financial year 2014 ended Dec 31 (4QFY14), from RM4.66 million a year ago, bringing its loss per share to 40.03 sen from 4.20 sen.

Its revenue for the quarter declined 15% to RM76.64 million, from RM89.82 million in the corresponding quarter a year earlier.

In its filing with Bursa Malaysia yesterday, Utusan (fundamental: 0.2; valuation: 1.2) said its dismal performance was due to “lower revenue and higher impairment charges on trade and other receivables”.

The group saw lower revenue across all its segments, with its publication, distribution and advertisement segment, and investment holding, management services and other segment, both posting higher loss before tax for the quarter.

For FY14, Utusan’s net loss widened to RM80.9 million, from RM16.21 million in FY13, while revenue fell 15% to RM291.32 million from RM342.43 million.

Its loss per share for the year was higher at 73.05 sen compared with 14.64 sen.

“The group expects 2015 to remain challenging, in view of increasing competition for the market share of advertising expenditure and circulation of newspapers.

“Nevertheless, we will continue with our newspapers’ content improvement strategies and offer creative packages for advertisements,” said Utusan on its prospects.

The group highlighted the improvement of its flagship newspapers, namely Utusan Malaysia and Mingguan Malaysia, to include new and refreshed columns, while Utusan Online has also been given a new look.

“The group will continue to adopt prudent cost-saving strategies in its business operations. Among others, the group is undertaking measures to reduce the return rate by employing efficient allocation of newspapers and magazine supplies,” it said.

Utusan closed 0.5 sen or 0.74% lower at 67 sen yesterday, giving it a market capitalisation of RM74.8 million.

This article first appeared in The Edge Financial Daily, on February 26, 2015.