Media Prima's 4Q earnings fall 21% on lower ad revenue

KUALA LUMPUR (Feb 22): Media Prima Bhd's net profit fell by 21% to RM22.85 million or 2.06 sen per share for the period ended Dec 31, 2022, from RM28.94 million or 2.61 sen per share a year ago, as revenue from advertising and home-shopping businesses declined.

Revenue was 20% lower at RM252.67 million, from RM315.90 million previously, according to the media group in a stock exchange filing on Wednesday (Feb 22).

For the cumulative 12-month period, net profit eased 6.1% to RM51.86 million from RM55.23 million for the previous corresponding period, while revenue dropped 11% to RM997.88 million from RM1.12 billion.

Note that Media Prima recently changed its financial year end to June 30, from Dec 31 previously. The next audited financial statements of the group shall be for a period of 18 months from Jan 1, 2022 to June 30, 2023, and thereafter, the financial year shall end on June 30 for each subsequent year.

“Our results show that 2022 was more challenging for us, and media providers must quickly respond to the fast-changing competitive landscape,” said group managing director Rafiq Razali in a press release on Wednesday.

“We believe we can do more to accelerate revenue growth and improve operations,” he said.

Meanwhile, Media Prima in the stock exchange filing said it remains cautious about the challenges this year, and it is embarking on initiatives to create “sustainable long-term value” for its stakeholders over the next three years.

“This involves leveraging its competitive advantages in data-driven technology and talent across its wide-reaching media platforms,” the group said.

“Media Prima will explore new revenue streams, and further opportunities in the online video-streaming market, in line with growing consumption of video content among viewers and the massive shift in advertising expenditure towards digital media platforms.

“The group will also focus on boosting content across its diverse platforms, while growing and enhancing its media inventories,” it added.

Shares in Media Prima were trading one sen or 2.1% lower at 45.5 sen at Wednesday's noon market break, valuing the group at RM504.68 million.