Media Prima posts Q1 net loss of RM27.25m

KUALA LUMPUR, May 21 — Media Prima Bhd (Media Prima), Malaysia’s leading fully-integrated media group, posted a net loss of RM27.252 million in the first quarter ended March 31, 2020 against a net profit of RM38.858 million in the previous corresponding period.

For the quarter ended March 31,2020, revenue decreased to RM238.436 million from RM239.102 million.

“The Group also posted a net loss after tax (LAT) of RM30.0 million in the first quarter ended March 31, 2020 compared to a LAT of RM42.8 million in the previous corresponding period,” the group said in a statement today.

It said in the period under review, Media Prima remained the most popular choice for mobile content in the country, and has the nation’s third highest digital audience reach behind Google and Facebook.

Commerce revenue grew 24 per cent in first quarter of 2020, driven by Media Prima’s home shopping network CJ Wow Shop which recorded an 18 per cent revenue increase and 27 per cent increase in customers.

In addition, Group traditional revenue dropped by seven per cent due to cautious spending by advertisers.

Circulation revenue improved by 12 per cent for the three months under review, reflecting the positive outcome of measures undertaken to improve efficiency in this segment.

Meanwhile, Media Prima group chairman Datuk Syed Hussian Aljunid said the enforcement of the movement control order (MCO) to curb the spread of Covid-19 has impacted several businesses.

“While Media Prima was deemed an essential service to continue operating during the MCO, our businesses were not spared from the impact of lower advertising take-up during these uncertain times.

“Nonetheless, we continue to leverage our proactive business continuity initiatives and digital capabilities to mitigate the impact of Covid-19.

“We will continuously review them to ensure the Group’s sustainability during these challenging times,” he said.

 In first quarter of 2020, Media Prima kicked off two new businesses — Media Prima Omnia Sdn Bhd (Omnia) and Print Towers Sdn Bhd (Print Towers) — to generate new revenue and optimise available capacity within the Group.

Media Prima group managing director Datuk Iskandar Mizal Mahmood said the next transformation phase involves improving costs and operational efficiencies while delivering more effective solutions across their media platforms.

“We believe that our first quarter of 2020 performance demonstrates that we are heading in the right direction to become a more resilient company. Nonetheless, the impact of the Covid-19 pandemic will require us to undertake mitigation measures to stabilise the Group.

“While the Group continues to defend Media Prima’s traditional businesses, digital and commerce remain our key growth areas. We will continue to find new ways to leverage the strengths of our traditional media brands to meet evolving consumer trends while capitalising on the demand for more digital products,” he added. — Bernama