Ber­jaya Me­dia posts wider net loss in the sec­ond quar­ter

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: Ber­jaya Me­dia Bhd, the pub­lisher of theSun news­pa­per, re­ported a wider net loss of RM2.57mil in the sec­ond quar­ter ended Oct 31 on the back of de­clin­ing ad­ver­tis­ing in­come.

The group said in a Bursa Malaysia fil­ing that its net loss in the three-month pe­riod had in­creased from a net loss of RM2.54mil in the pre­vi­ous year’s cor­re­spond­ing quar­ter.

Rev­enue in the sec­ond quar­ter fell by al­most 22% year-on-year (y-o-y) to RM6.53mil.

“The drop in rev­enue for the quar­ter was mainly due to lower ad­ver­tis­ing in­come re­ported by its prin­ci­pal op­er­at­ing sub­sidiary, Sun Me­dia Corp Sdn Bhd, as ad­ver­tis­ers have shifted their ad­ver­tis­ing pref­er­ence to the dig­i­tal platform.

“The loss from op­er­a­tions of Sun Me­dia has re­duced due to ef­fec­tive cost con­trol mea­sures un­der­taken. How­ever, the pre-tax loss was higher mainly due to con­sul­tancy and ad­vi­sory fees in­curred for the cor­po­rate ex­er­cise re­lat­ing to the (com­pany) reg­u­lar­i­sa­tion plan,” said Ber­jaya Me­dia.

No div­i­dend was an­nounced for the quar­ter. Loss per share was 1.09 sen.

In the first half of fi­nan­cial year 2019, the group’s net loss widened to RM5.32mil as com­pared to the net loss of RM4.02mil in the same pe­riod a year ear­lier.

Top line in the first six months dropped by 25% y-o-y to RM13.9mil due to lower rev­enue con­tri­bu­tion from ad­ver­tise­ments.

On its prospects, Ber­jaya Me­dia ex­pects its busi­ness for the re­main- ing fi­nan­cial pe­riod to re­main chal­leng­ing.

“In view of the group’s cur­rent fi­nan­cial con­di­tion, more mar­ket­ing ef­forts are be­ing ini­ti­ated to im­prove the group’s fi­nan­cial po­si­tion and to pre­serve the share­hold­ers’ eq­uity funds. The board has been ex­plor­ing other op­tions (in­clud­ing di­ver­si­fy­ing into new busi­nesses out­side the me­dia sec­tor) to strengthen the fi­nan­cial po­si­tion of the group with the pri­mary ob­jec­tive of reg­u­lar­is­ing its Prac­tice Note 17 con­di­tion,” it said.

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