KUALA LUMPUR, Nov 18 — Malaysian media conglomerate Media Prime Bhd announced today that its profits grew by 11 per cent in 2013 in comparison with last year's earnings, buoyed largely by a surge in demand for advertising space.

As at September 2013, the group recorded a year-to-date (YTD) profit after tax and minority interest (PATAMI) of RM150.7 million, as its revenue grew 4 per cent from RM1.44 billion in 2012 to RM1.5 billion this year.

In comparison, its PATAMI in the same period last year grew by just 3 per cent from RM132.7 million in 2011 to RM136.7 million in 2012, while its revenue grew by only 2 per cent.

“The increase in Group’s YTD gross revenue is attributed to a significant contribution by non-traditional advertisers and new market segments, whilst the growth in PATAMI was achieved partly through cost management and optimisation of the Group’s operations,” Group Managing Director Datuk Amrin Awaluddin said in a statement here.

“The Group has been successful in delivering value to our shareholders over the years ... Being the country’s leading integrated media company, we remain the preferred choice for advertisers looking for comprehensive, customised and integrated solutions,” added chairman Datuk Johan Jaaffar.

As all of its media platforms recorded revenue growth, the group revealed that its radio arm's revenue rose by 22 per cent thanks to higher sponsorship by advertisers and government-related spending on advertisements.

In addition, its television arm's revenue increased by 5 per cent, while outdoor media went up by 3 per cent, and print media by 1 per cent.

In February this year, research house Maybank Investment Bank (IB) Bhd had sounded a “buy” call for Media Prima's shares, together with pay-TV provider Astro, noting that television and radio advertising expenditure (adex) had jumped by 26 per cent and 32 per cent respectively.

According to a report by Maybank IB, government agencies - especially the Prime Minister's Department - was the top ad spender in February 2013, with its RM36.1 million spent going mostly to Media Prima and Astro.

“This is typical of ad spend before general elections, where the government spends more on ads on free-to-air TV and radio than on print, to better ‘connect’ with the voters,” it said.

Media Prima's performance in the last quarter of the year remains to be seen, as Maybank IB also expected the media group to take the biggest hit from reduced consumer sentiments, resulting from recent subsidy cuts.

In a separate report in September, the research house expected Media Prima to face reduced earnings in the future as a result of declining adex, consistent with previous subsidy cuts in the last few years.

The subsidy cuts might impact Media Prima’s adex growth as advertisers cut their advertising and promotional budgets to compensate for higher prices of fuel, gas and electricity, it said.

Public-listed Media Prima owns television channels TV3, 8TV, ntv7 and TV9; publisher New Straits Times Press; radio stations Fly FM, Hot FM and One FM; and several advertising firms.

The Malay Mail Online had reported in August that the federal government had spent RM531 million on advertisements in the first half of 2013, a 160 per cent increase over the same period last year, according to international media-buying agency Vizeum Media.

Of the over half-billion spent, the Prime Minister’s Department took up the lion’s share with an outlay of RM264 million for the first six months of the year, or five times more than it did in 2012.