Media Prima’s (MPR) 1Q17 revenue declined by 10.5% yoy to RM272.2m, mainly due to lower advertising and newspaper sales. The traditional media platforms of the TV network and print media saw weak adex and faced a shift to digital media. MPR reported a net loss of RM38.5m vs. a net profit of RM17.2m in 1Q16 (Bloomberg consensus 2017E: RM78.8m).

Lower Revenue From TV, Print, Radio and Digital Divisions

MPR’s 1Q17 revenue declined by 10.5% yoy to RM272.2m, mainly attributable to the lower advertising and newspaper sales. The traditional media platforms faced weak adex and the shift towards digital media. MPR has ventured into the digital and consumer-based business to complement the group’s traditional media segments but these initiatives remain in the gestation period. The revenue contribution from MPR’s TV network, print media, radio network and digital media divisions fell by 23.1%, 25.4%, 15.6% and 26.4% yoy respectively to RM106.7m, RM82.2m, RM12.3m and RM0.4m. On the other hand, the outdoor media and content creation divisions’ revenue grew by 2.2% and 56.2% yoy respectively to RM37.4m and RM5.5m, while the home shopping division reported a contribution of RM27.7m.

Net Loss of RM38.5m in 1Q17

MPR reported a LBT of RM39.4m in 1Q17 vs. a PBT of RM21.3m in 1Q16, mainly due to losses from the TV network and print media divisions. Meanwhile, MPR’s net loss of RM38.5m compares with a net profit of RM17.2m in 1Q16. Bloomberg’s consensus forecast was for a net profit of RM78.8m in 2017E.

Affin Hwang as Principal Adviser for Rev Asia

Note that Affin Hwang Investment Bank has been appointed by Rev Asia as the principal adviser for the proposed disposal to Media Prima.

Source: Affin Hwang Research - 30 May 2017