Media Prima returns to black, helped by asset disposal

By FARA AISYAH / Pic By ISMAIL CHE RUS

Media Prima Bhd returned to the black for the fourth quarter ended Dec 31, 2018, with a RM79.2 million net profit compared to the RM378.15 million net loss a year ago due to the one-off gain from asset disposals.

The media group booked a net income of RM133.1 million after disposing of and leasing back key assets in Bangsar and Shah Alam.

For the final three months of 2018, revenue decreased 5.21% to RM290.9 million compared to a year ago.

For the financial year ended Dec 31, 2018 (FY18), Media Prima also posted a net profit of RM58.62 million, compared to a massive RM650.61 million net loss in the preceding year.

Annual revenue for 2018 remained flat at RM1.19 billion, against RM1.2 billion in FY17.

“Our FY18 results show that our transformation initiatives have begun to improve our margins and offset losses from our traditional segments.

“Barring exceptional items, the group would have also posted a lower loss after tax by 42% against the comparative period (a year ago),” Media Prima group MD Datuk Kamal Khalid (picture) said in a statement yesterday.

“Nonetheless, we believe operating as an asset-light group, as well as a leading player in the traditional and digital landscape, gives us greater agility and a competitive edge to rapidly expand in key growth areas,” he added.

Media Prima’s digital and commerce revenue in FY18 increased by 76% to RM301 million and has cushioned the revenue decline from the traditional business segments, as reflected in the group’s better financial performance in the year.

The group digital revenue increased to RM87.9 million in FY18 from RM41.5 million a year ago.

The highlight of the company’s transformation in 2018 was its home shopping segment, which has shown promising growth year-on-year and is expected to break even in 2019.

Media Prima Television Networks’ CJ WOW SHOP generated total sales of RM213.1 million in FY18, a 65% increase from RM129.5 million in the previous year.

CJ WOW SHOP amassed a total of 1.2 million customers in FY18, and will be allocated more broadcast hours and resources in 2019.

Media Prima group chairman Datuk Mohd Nasir Ahmad said the improved financial performance underscores the positive impact of the group’s transformation plan.

“We believe our initiatives in FY18 have built a stronger foundation to tap into new revenue growth and opportunities in 2019.

“Moving forward, we will remain focused on honing our competitive advantage in the digital and commerce segments, while keeping a close watch on operational efficiencies as part of our strategies to enhance shareholder value,” he added.