KUALA LUMPUR: Media Prima Bhd, Malaysia’s largest integrated media company recorded a revenue of RM1.4 billion and a net profit of RM138.7 million for the full financial year ended December 2015.
In a statement yesterday, the company’s net profit for the 12-month financial year ended December 31 2015 rose to RM138.71 million compared to RM75.52 million it achieved in 2014 as a one-off Mutual Separation Scheme (MSS) cost was incurred in the preceding financial year.
The profit was achieved despite a lower turnover or a five per cent drop in revenue to RM1.4 billion compared with RM1.5 billion a year ago.
On a quarter-on-quarter comparison, the Group recorded RM367.1 million in revenue during the fourth quarter of 2015, compared to RM384.7 million registered in the comparable quarter in 2014, while it recorded a net profit of RM32 million reversing a net loss of RM30 million in the corresponding quarter in 2014.
The Group’s financial performance for the fiscal year reflected the challenging environment faced by Media Prima. Nonetheless, despite the challenges faced, Media Prima was able to maintain its leadership position across the Group’s media platforms,”.
Media Prima group chairman Datuk Seri FD Iskandar said the group had anticipated a period of subdued market sentiments in 2015, with lower advertising revenue recorded by its media platforms with the exception of the out-of-home advertising business.
He added that the group declared a final single tier dividend of five sen per ordinary share for the financial year ended December 31, 2015, bringing the total dividends declared for the current financial year to 10 sen per ordinary share which represents 80 per cent of the group’s profit after taxation and minority interests.
Commenting on prospects for this year, group managing director Datuk Sri Amrin Awaluddin said the year was expected to remain challenging.
“In addition to the prevailing low commodity prices and a lower forecasted Malaysia gross domestic product, factors such as consumer fragmentation, technological advancements, a shift in advertisement to digital and increased competition from new entrants and global media players will also pose acute challenges to the group throughout 2016,” he said.
While the group remains cautious on advertising growth in view of the consumer and economic sentiments, Amrin said Media Prima will focus on the execution of its key strategies to provide the best local and international content while aiming to penetrate new markets and build additional revenue streams.
Media Prima Television Networks’ (MPTN) recent home shopping joint venture with Korean-based CJ O Shopping Co Ltd will provide the group with an attractive opportunity to participate in the Malaysian retail market and realise new revenue opportunities.
It will also continue to make prudent investments in local and international content to ensure it maintains the dominant positions of its television channels.
Meanwhile, the completed acquisition of two new radio stations in 2015 would enable the expansion of Media Prima Radio Network’s (MPRN) offerings to a wider segment of listeners, media buyers and advertisers.
MPRN has one of the largest social media presence with over 6.2 million users with digital applications for its three radio stations.
Big Tree Outdoor (BTO), Media Prima’s Out-of-Home (OOH) Advertising company will continue its strategy of growing its digital out-of-home solutions at premium sites and securing key concessions which have contributed positively to the group’s earnings in 2015.
Last year, Media Prima had secured concession rights for Nu Sentral, naming rights for KL Monorail Bukit Bintang and LRT Kelana Jaya line Bangsar stations and expanded its Cubiq Digital boards in two key locations in Jalan Bangsar and Jalan Imbi.
The expected completion of rapid transit lines in 2016 offers new concession opportunities for the Group. BTO currently holds 44 per cent share in the OOH media solutions market.
In its print business, The New Straits Times Press (M) Bhd (NSTP) continued to diversify its revenue streams while enhancing brand and content offerings in 2015.
These include the launch of mobile friendly applications for New Straits Times, BH and Harian Metro as well as offering news content through digital platforms such as news website, ePaper, Google Play Newsstand as well as social media avenues like Facebook, Instagram, Twitter and YouTube.
The group also offers news and contents through its digital interactive magazines ZIP, Tech Kingdom and also Premium BH Plus. The new offerings are expected to contribute positively to NSTP.
Primeworks Studios (PWS), Media Prima’s production company will continue producing hit content for MPTN and external markets including for new digital platforms. Programmes produced by PWS dominated the Top 10 programmes with the highest viewers in Malaysia across all television channels in 2015.
These include Anugerah Juara Lagu (3.7 million viewers), Anugerah Bintang Popular Berita Harian (3.2 million viewers) and Bintang Bersama Bintang (2.7 million viewers).
PWS will also focus on the monetisation of intellectual properties to provide new revenue streams.
Media Prima Digital (MPD) will continue to provide a platform to innovate and incubate new digital products and services.
With a strong portfolio of popular online services already developed such as Tonton, MPD is well equipped to venture into the lucrative mobile applications market in 2016.