(MEDIA closing stock price yesterday- (16.5.2012) was RM 2.40)
Media Prima Bhd's net profit and revenue for the first quarter ended March 2012 fell 40.4 per cent and 5.3 per cent to RM20.8 million and RM335.3 million, respectively, from the previous corresponding quarter due to lower advertising expenditure amid the current volatile global economy.
The media conglomerate, however, is optimistic of the remaining part of the year as it anticipates positive growth of the country's economy while special events taking place in the subsequent quarters are expected to bring in advertisement revenue.
It said the first quarter of the year has traditionally been the lowest one in terms of advertising expenditure (adex).
"Managing costs through reasonable limit of growth or flat growth, if not lower, has cushioned us from severe repercussion from the softening adex," chairman Datuk Johan Jaaffar said in a statement.
Group managing director Datuk Amrin Awaluddin expects an improved outlook for both consumers and advertisers as the domestic economy is projected to record positive growth.
"Despite the softening of revenue for the first quarter of this year, Media Prima's asset and business outlook remains strong.
"We are optimistic of the remaining part of the year with special events such as the Olympics 2012, Euro 2012 and expectation of general election taking place in the next quarters," he said in the statement.
In the quarter under review, the revenue of Media Prima's television networks dropped 20 per cent to RM119 million, driven by the macroeconomic sentiments and the traditional slow adex at the beginning of each year.
It said adex will normally accelerate from the second quarter onwards.
Media Prima's radio networks recorded 10 per cent revenue growth to RM13.8 million from the same quarter a year ago.
The group's print division, NSTP, registered a growth of two per cent in revenue to RM158 million, against a backdrop of an overall market decline in print adex.
Its new media division reported a record revenue growth of 57 per cent to RM4.4 million, while the revenue of its outdoor media grew 15 per cent to RM38 million.
Amrin said the group will continue to focus on cost management through operational efficiency, while at the same time, explore new sources of revenue.
This will be done by leveraging on its strength of delivering "enthralling content" to an audience of 24 million daily.
In a separate statement to Bursa Malaysia, Media Prima outlined its strategies in facing the global economic challenges.
For television network, it will continue to invest in quality content and ground events throughout the country to sustain its leadership position in television viewership and brand loyalty. "This will in turn translate to higher confidence by customers to invest in advertisement," it said.
For print media, the group will embark on optimal management of newsprint inventories in light of the softening newsprint price; reviving of brand, image and content; focusing on printing quality and productivity as well as maximising advertising revenue from the strong Malay sector readership.
Source: www.btimes.com.my
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