KUALA LUMPUR, Aug 27 — Media group Media Prima Berhad’s home shopping segment posted a first half net profit of RM6.3 million, sharply reversing a net loss of RM7.6 million a year ago.
In a statement of their financial period ended 30 June 2020 (1HFY20), Media Prima said the segment show — CJ Wow Shop’s turnaround was achieved on the back of a 34 per cent increase to RM152.8 million in 1HFY20 revenue compared to RM114.3 million in the corresponding period.
Group Chairman of Media Prima Datuk Syed Hussian Aljunid said the performance of the shopping segment is proof of their success as an essential service provider for the movement control order (MCO) brought by the Covid-19 pandemic.
“The uncertainty that arose during the Covid-19 pandemic was a trying time for our operations however, as an essential service provider during the movement control order, it became an opportunity to capture new business opportunities.
“CJ Wow Shop gained from the higher broadcast viewership, which also prompted new customers and greater sales from our ecommerce and mobile commerce platforms.
“We have built a strong foundation for this segment and remain focused on honing this competitive edge,” he said in the statement.
Media Prima — a giant media and entertainment company with businesses in television, print, radio, out-of-home advertising, content creation and digital media — managed to improve their performance despite their businesses continued to be pressured by industry challenges exacerbated by the impact of the Covid-19 pandemic on the economy.
Through their rejuvenation programmes, Media Prima’s revenue declined only by 11 per cent to RM474.7 million in 1HFY20 compared to RM535.9 million a year ago.
Group Managing Director of Media Prima Datuk Iskandar Mizal Mahmood said more of their audience have been engaging with online activities which the Group has been ready for.
“Although our industry was heavily impacted by the economic effects of the Covid-19 pandemic, our commerce and digital platforms experienced a surge in traffic as more Malaysians go online.
“We believe these two segments will be areas of significant growth for the Group. As Malaysia’s largest integrated media company, we are confident that spending on advertising will return as businesses adapt to the new normal and reconnect with consumers,” he said.
Meanwhile, The Star Media Group Bhd (SMG) also shared an optimistic view of its digital segments.
The Star Online reported that SMG expected revenue growth from its digital segment despite the soft and challenging market conditions and would focus on using new technologies and analytics to improve, deepen and predict how their customers consume content with the end goal of increasing engagement and monetisation to drive new revenue streams beyond its print business segment.
“With our existing growth in digital platforms, we hope to increase the advertising take-up rates during these uncertain times and achieve a higher growth in the near future.
“The group has embarked on various cost-cutting measures and efforts are also being directed at restructuring some of the business units within the group to re-strategise operations, which include manpower rationalisation and realignments in how we get back into the market, especially post MCO.” said the company in its report by The Star Online.