16 May 2012

Media Prima Q1 2012 quarterly earnings fell 40.2% to RM 20.79 million, revenue fell 5.3% to RM 335.3 million on declining TV advertising expenditure

(MEDIA closing stock price today (16.5.2012) was RM 2.40)

Media Prima Bhd's earnings fell 40.2% to RM20.79mil in the first quarter ended March 31, 2012 from RM34.79mil a year ago due to softening advertising expenditure.

It said on Wednesday net revenue fell 5.3% to RM335.28mil from RM354.19mil due to a decline in adex as the market reacted to the global economic crisis, which hit Europe and North America.

Its profit before tax declined 39.2% to RM28.92mil from RM47.56mil.

Media Prima chairman Datuk Johan Jaaffar said as anticipated, Q12012 was very challenging for the group as perceived economic performance influenced spending trend and confidence of the clients.

"Managing costs through reasonable limit of growth or flat growth, if not lower, has cushioned us from severe repercussion from the softening adex," he said. Media Prima's outdoor media recorded revenue of RM38mil, up 15% on-year. Its radio networks's revenue rose 10% to RM13.8mil.

Its print division, NSTP, recorded a 2% rise in revenue to RM158mil against a backdrop of an overall market decline in print adex.

Its new media division's revenue grew 57% to RM4.4mil.

The television networks division reported a 20% decline in revenue to RM119mil. The factors were due to macroeconomic sentiments, the traditional slow advertisement spending at the beginning of each year, which would accelerate from the second quarter onwards.

Source: www.thestar.com.my

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