KUALA LUMPUR: Despite challenges during the Movement Control Order, Media Prima Bhd reported a lower net loss of RM48.05 million for the six months to June 30 2020.
This was a 10 per cent improvement from the RM53.6 million net loss recorded a year ago.
Media Prima said while its businesses continued to be pressured by industry challenges exacerbated by the impact of Covid-19 on the economy, its revenue had declined only by 11 per cent to RM474.7 million in the first half (1H) of 2020 against RM535.9 million a year ago.
"Media Prima's transformation plan, which involved a revision of revenue models, has defended the group from a steeper revenue decline.
"The transformation also involves the reduction of cost inefficiencies from unnecessary work duplication," it said in a statement today.
Media Prima said if exceptional items, namely the termination benefits charge of RM11.3 million, were excluded, the net loss would have narrowed by 32 per cent to RM36.7 million against the comparative period.
"This is evident in the improvement of earnings before interest, taxation, depreciation, amortisation and impairment of RM16.3 million compared to RM10.0 million for the corresponding period despite the drop in revenue," it said.
Group revenue for the three months period ended June 30, 2020 dropped marginally to RM236.3 million against RM238.4 million in the previous quarter.
Group's losses narrowed by 40 per cent to RM18 million in Q2 compared to RM30 million in Q1.
Media Prima said its home shopping segment had posted a first half net profit of RM6.3 million, sharply reversing a net loss of RM7.6 million a year ago.
CJ Wow Shop's turnaround was achieved on the back of a 34 per cent increase to RM152.8 million revenue in 1H 2020 compared to RM114.3 million in the corresponding period.
This included higher sales from its e-commerce and mobile commerce platforms which contributed over 52 per cent of its total sales.
To date, CJ Wow Shop has over two million customers and produces over 100 lives show slots every month.
"Media Prima's large broadcast reach — over 35 per cent total audience share — has served as one of the key drivers to the success of its home shopping segment.
"CJ Wow Shop also leverages the group's overall mass reach and digital capabilities to target audiences with data-driven content and to strategically plan airtime and products," it said.
Media Prima group chairman Datuk Syed Hussian Aljunid said the turnaround at CJ Wow Shop underscored the success of the group's home shopping venture that it built four years ago.
"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.
Media Prima group managing director Datuk Iskandar Mizal Mahmood said while the media industry was heavily impacted by the economic effects of the pandemic, its commerce and digital platforms had 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.
Iskandar said results of the transformation exercise which includes consolidation of all advertising functions for the broadcasting, publishing and content creation business segments under Media Prima Omnia beginning April 2020 were positive.
"Moving forward, the group will further streamline marketing functions and revenue. Commercial and radio airtime activities from Media Prima Television Networks and RIPPLE will be consolidated under Broadcasting.
"Nonetheless, we anticipate tough economic conditions to persist and we will continue to implement measures to improve operational efficiencies with prudent cost-management without sacrificing the quality of our offerings," he said.
The group recently revealed a new identity for Media Prima Digital and REV Asia — REV Media Group — as part of its corporate rebranding initiatives and to streamline business processes and functions.
REV Media Group represents over 30 top authority brands and reaches out to more than 15 million people every month.