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Media Prima 1Q net profit grows 14.9% to RM6.03m on lower depreciation and amortization expenses, higher other operating income
KUALA LUMPUR (May 30): Media Prima Bhd’s net profit in the first quarter ended March 31, 2022 (1QFY22) grew by 14.9% to RM6.03 million compared to RM5.25 million, supported by lower depreciation and amortization expenses together with higher other operating income.
As a result, earnings per share rose to 0.54 sen from 0.47 sen.
In a Bursa Malaysia filing on Monday (May 30), the group said its quarterly revenue declined by 2.77% to RM247.47 million from RM254.53 million, driven by Omnia’s integrated advertising strategy which led to a 14% year-on-year increase in advertising revenue.
On a quarterly basis, the group’s net profit, however, fell by 79.17% from RM28.94 million recorded in the immediate preceding quarter (4QFY21) while revenue decreased by 21.66% from RM315.9 million in 4QFY21.
Moving forward, the group said ratings, listenership and reach across all its platforms are still strong, which give the group confidence that this will be a key catalyst for the growth of its advertising revenue in the remaining quarters of the year.
“We are cautiously confident that our other platforms including Out-of-Home and Media Prima Audio will see recovery in the coming quarters this year.
“The positioning of Omnia as an advertising solutions provider that offers creative services and integrated marketing solutions across all of the group’s media platforms will continue to facilitate the growth.
“On the non-advertising revenue front, the group is looking to move forward with the next phase of growth for WOWSHOP,” it said in its filing to Bursa.
The group added that it foresees to benefit from the increase in demand for more local content from existing and new streaming service providers.
“The group will focus on sustaining the performance by accelerating revenue-generating efforts for its advertising, digital and commerce businesses whilst continuously monitoring its cost management initiatives.
“The group will continue to look out for more strategic collaborations to grow further, while elevating its competitive advantage,” it explained.
In a separate statement, Media Prima group chairman Datuk Seri Syed Hussian Aljunid said: “We are pleased with our results for 1QFY22. This was backed by stronger advertising revenue contributions across all our business segments which illustrates that we have established a strong sales strategy and team under Omnia.
"The group believes that Omnia is poised to benefit from the reopening of the economy which has prompted advertisers to spend more. We are also heartened by the performance of our broadcasting and digital segments which have contributed significantly to the group’s overall revenue.”
Media Prima group managing director Rafiq Razali said: “We marched into 2022 on a positive note, recording a profitable quarter following our strong performance in FY21, despite the period under review being a traditionally challenging period of the financial year. This illustrates that the group remains resilient and agile despite the fast-changing media landscape. Nonetheless, the challenges and competition will evolve and we must continue to adapt and reform to ensure Media Prima always delivers the best to our advertisers, and to the 98% of Malaysian households we cater to."
Shares in Media Prima closed one sen or 1.83% lower to 54 sen on Monday, giving it a market capitalisation of RM588.03 million.
Joyce Goh
https://www.theedgemarkets.com/article/media-prima-1q-net-profit-grows...
