KUALA LUMPUR (Feb 25): Utusan Melayu (Malaysia) Bhd saw its net loss multiply to RM44.32 million in the fourth quarter ended Dec 31, 2014, from RM4.66 million in the year before, bringing its loss per share (LPS) 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 the bourse, 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 advertisements segment, and investment holding, management services and others segment, both posting higher loss before tax for the quarter.

For the financial year ended Dec 31, 2014, Utusan’s net loss widened to RM80.9 million, from RM16.21 million in the year before; while revenue fell 15% to RM291.32 million, from RM342.43 million.

Its LPS for the year was higher at 73.05 sen, compared to 14.64 sen.

“The group expects the year of 2015 to remain challenging, in view of increasing competition for the market share of advertising expenditure (ADEX) 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. Amongst 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, giving it a market capitalisation of RM74.8 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)