MEDIA PRIMA ON RIGHT TRACK

Transformation strategy bearing fruit, as shown by improved financial performance last year

MEDIA Prima Bhd’s transformation journey, which focuses on revenue diversification, is bearing fruit.

Malaysia’s largest integrated media group has seen positive growth in its digital and commerce ventures led by its home shopping segment, CJ Wow Shop.

“The group’s operational losses have narrowed as a result of the successful implementation of digital and commerce strategies

over the years.

“We will continue to invest more resources in key growth areas, with the aim of attaining sustainable profitability,” said Media Prima chairman Datuk Mohd Nasir Ahmad in a statement issued after the company’s annual general meeting, here, yesterday.

Despite tough economic conditions last year, Media Prima posted revenue of RM1.2 billion, which represents a marginal yearon-year decline compared with a seven per cent drop in 2017.

Net profit stood at RM59 million, reversing a net loss of RM669.7 million in 2017.

The profit was boosted by oneoff net income items amounting to RM159.7 million, mainly attributable to the gains on the sale of properties and an associate disposal.

Excluding the one-off income, the group had narrowed the 2018 loss by 42 per cent against the comparative year.

Media Prima’s new revenue contribution grew to 25 per cent from 14 per cent, which represents a quarter of its total revenue for last year.

The growth was driven by the group’s digital and commerce ventures, which recorded a 76 per cent increase in revenue to RM301 million.

In the digital segment, Media Prima has reached a new milestone when it became the top choice for mobile content in Malaysia, ahead of Google and Facebook.

Group digital revenue rose to RM87.9 million last year from RM41.5 million in 2017.

In the commerce segment, CJ Wow Shop generated total sales of RM213.1 million last year, a 65 per cent increase from RM129.5 million in 2017.

Media Prima group managing director Datuk Kamal Khalid said: “Our 2018 results are a good indication that we are on the right path in our transformation strategies. The decline in traditional revenue was offset by higher revenue from our digital and commerce businesses.

“CJ Wow Shop has made commendable progress, and we are cautiously confident that this segment will break even this year.”

He said the group targeted to increase the digital revenue contribution to 20 per cent by capitalising on its wide digital audience across our multiple platforms.

“We are positive of achieving this, given the digital segment’s increased contribution in 2018,” added Kamal.