Media Prima’s shares close at five-month low after lay-off rumours

KUALA LUMPUR, Nov 1 — Media conglomerate Media Prima Bhd’s shares fell to 35 sen per unit at market closing today, amid rumours of a new round of downsizing earlier today.

The share price is its lowest since June this year.

By comparison, it had opened at 36.5 sen per unit earlier today.

Media Prima’s shares have not risen above the 40 sen per unit threshold since mid-October, despite hovering near the 48 sen per unit mark between July and early last month.

The price of its shares fell in mid-October after an announcement on October 9 that Aurora Mulia Sdn Bhd, linked to tycoon Tan Sri Syed Mokhtar al-Bukhary, had gained close to one-third of its stake.

Earlier today, financial paper The Edge reported that a meeting among heads of departments was called this afternoon to discuss the outcome of a board of director's meeting earlier this morning.

Malay Mail understands the meeting is still ongoing and staff members have not been informed of its decision.

It is rumoured that the company will axe as much as one-third of its workforce.

Last year, its subsidiary and TV3 station operator, Sistem Televisyen Malaysia Bhd, retrenched 190 employees by giving them three months' notice, while mutual separation schemes were offered to 43 others.

In the second quarter of the year, Media Prima posted a net loss of RM8.83 million, as traditional revenue segments, including publishing and television networks, have seen lower contributions.

It has seen a string of quarterly losses since the third quarter of 2016, with the exception of the fourth quarter of that year, and the second and fourth quarter of 2018.

Media Prima owns the New Straits Times Press (Malaysia) Berhad, with the newspapers New Straits Times, Berita Harian and Harian Metro under it, as well as four television channels, TV3, NTV7, 8TV and TV9.