PublicInvest positive on Media Prima’s three new initiatives

Public Investment Bank Bhd (PublicInvest) is positive on Media Prima Bhd’s newly-launched Ais Kacang Podcast, SuperDeals and Icon initiatives.

Nevertheless, the firm said weak advertising expenditure sentiment, costs of new initiatives and long gestation phases would remain a concern in the near term.

“Media Prima organised a Media Prima Radio Network (MPRN) Trade Launch recently, where we became positive on the three brand new initiatives.

The new initiatives require minimal capital expenditure (capex), and would leverage on internal resources such as product engineers,” said PublicInvest in a report yesterday.

It said the capex estimated was less than RM500,000 for the first year, including talent and operating cost.

For the near term, the group aims to generate more user content to expand the podcast base.

Ais Kacang Podcast is a digital media format comprising a series of talk shows with specific themes.

Listeners can stream digitally and access original programming content through 30 different podcasts weekly cut across three main languages — Bahasa Malaysia, English and Chinese.

“MPRN sees penetration opportunities in the podcast space and aims to increase its digital revenue by 10 per cent from this avenue,” said PublicInvest.

On SuperDeals, an e-commerce platform, the firm said MPRN was banking on the popularity of online shopping to harness the power of its digital media that has 7.7 million followers in generating additional revenue.

This is done via offering an alternative way for e-commerce merchants to advertise and promote their platforms.

“With this latest offering, MPRN acts as virtual storefront where partners can advertise their special offers or products through the official website of Fly FM, Hot FM, One FM, and Kool FM.

“It would collaborate with CJ Wow Shop to provide commercial arrangement for merchants not involved in logistics, and Lazada, the number one ecommerce player,” said the research firm.

On new Icons, Media Prima’s radio arms Fly FM, Hot FM, One FM and Kool FM will have its own icons to reflect the character of the station and target audiences.

“The icons are created to further strengthen the stations’ branding, to explore new business opportunities in producing premium merchandise and to generate revenue,” said PublicInvest.

“The icons will demonstrate their individual character through respective social media platforms and digital content.

“MPRN envisions to develop the icons into animated content and also to venture towards virtual gaming, in line with current consumer trends,” it said.

PublicInvest retained its “neutral” call on Media Prima with an unchanged target price of RM1.00.