Media Prima back in the black
KUALA LUMPUR: Media Prima Bhd swung back in the black with a net profit of RM58.9 million in the financial year ended December 31 2018, reversing a net loss of RM699 million previously.
This was achieved on the back of successful revenue diversification, as well as the execution of asset-light strategies in line with the group’s transformation mission, the company said.
“The group’s improved net profit was contributed by a oneoff gain of RM133.1 million following the completion of a sale and leaseback arrangement.
“This is in-line with the assetlight strategy which enables the group to be more lean and agile as it accelerates digital and commerce growth this year,” it said in a statement yesterday.
The group’s revenue for the period declined slightly to RM1.18 billion from RM1.19 billion in 2017.
Media Prima’s digital and commerce ventures recorded positive growth last year. Digital and commerce revenue increased 76 per cent to RM301 million. This cushioned the revenue decline from traditional business segments.
Group chairman Datuk Mohd Nasir Ahmad said the improved performance underscored the positive impact of its transformation plan.
Media Prima group managing director Datuk Kamal Khalid is optimistic of its future as an asset-light company.
“Our FY18 results show that our transformation initiatives have started to boost margins and offset losses from traditional segments. Barring exceptional items, the group would have posted a lower loss after tax by 42 per cent against the comparative period,” he said.
Media Prima said its collaboration with YouTube has delivered significant results.
The group’s channels saw an increase in viewership to 1.1 billion in FY18.
In digital publishing, REV Asia Holdings acquired a 25 per cent stake in Monster Scape Sdn Bhd, to strengthen its dominant position in the millennial Chinesespeaking online community.
This will allow REV Asia to scale at a rapid pace to cater to the demand for Chinese content from audiences and advertisers.
These strategies have led the group to surpass Google and Facebook as the most popular choice for mobile content among Malaysians.
Media Prima is owner of three national newspapers namely the New Straits Times, Berita Harian and Harian Metro. It also owns four FTA channels namely TV3, 8TV, ntv7 and TV9 as well as popular video streaming portal, tonton.