Ac­qui­si­tion will re­duce de­pen­dence on tra­di­tional as­sets, boost dig­i­tal reach

New Straits Times - - Business -


RAM Rat­ing Ser­vices Bhd ex­pects Me­dia Prima Bhd’s plan to ac­quire full own­er­ship of Rev Asia Hold­ings Sdn Bhd (RAH) for RM105 mil­lion to have no im­me­di­ate rat­ing im­pact.

Me­dia Prima car­ries cor­po­rate credit rat­ings of “AA1/Neg­a­tive/P1” and so does its RM500 mil­lion com­mer­cial pa­per/medium-term note pro­gramme.

RAM Rat­ing head of con­sumer and in­dus­trial rat­ings Kevin Lim said in a state­ment yes­ter­day the cor­po­rate ex­er­cise was recog­nised as a pos­i­tive ef­fort to di­ver­sify Me­dia Prima, given the de­cline in tra­di­tional ad­ver­tis­ing ex­pen­di­ture and grow­ing pop­u­lar­ity of dig­i­tal plat­forms.

But he said the earn­ings ac­cre­tion was not ex­pected to suf­fi­ciently mit­i­gate de­clin­ing earn­ings from tra­di­tional me­dia plat­form.

“While the ac­qui­si­tion is ex­pected to pro­vide an av­enue for Me­dia Prima to re­duce de­pen­dence on tra­di­tional me­dia as­sets and/or strengthen its me­dia out­reach, earn­ings con­tri­bu­tions from the new unit over the near-term is not an­tic­i­pated to be suf­fi­cient to make up for the steady de­cline in earn­ings from its tra­di­tional me­dia plat­forms,” he said.

Lim said the ex­er­cise, ex­pected to be com­pleted by the third quar­ter, would en­able the com­pany to cap­i­talise on RAH’s strengths and ex­pand its dig­i­tal reach to be­come the largest Malaysian dig­i­tal plat­form in terms of num­ber of unique vis­i­tors.

“The younger au­di­ence of these sites would pro­vide Me­dia Prima ac­cess to the ur­ban, tech­savvy seg­ment of the pop­u­la­tion, com­ple­ment­ing its cur­rent more ma­ture mar­ket.

“We noted that these dig­i­tal as­sets would en­hance the me­dia con­glom­er­ate’s ex­ist­ing busi­ness pro­file, al­low­ing it to cross sell its prod­ucts/ ser­vices across a wider range of plat­forms,” he said.

Lim said the neg­a­tive out­look on Me­dia Prima’s rat­ings re­flected the agency’s con­cerns over Me­dia Prima’s re­duced print cir­cu­la­tion and un­cer­tainty sur­round­ing the roll­out of dig­i­tal ter­res­trial TV and in­creas­ing threat from dig­i­tal me­dia. Ber­nama

Me­dia Prima Bhd’s plan to ac­quire full own­er­ship of Rev Asia Hold­ings Sdn Bhd for RM105 mil­lion will have no im­me­di­ate rat­ing im­pact, says RAM Rat­ing.

Petron’s new and im­proved edi­tion of the diesel fuel — the Turbo Diesel Euro 5 — is cur­rently avail­able at 73 petrol sta­tions, mostly in the Klang Val­ley.

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