Sluggish adex upsets Media Prima profits

• Media Prima reports a loss of RM23.23 million in first quarter 2009
• Radio and outdoor assets performed well and showed growth in 1Q

Malaysia - Media conglomerate Media Prima Bhd has reported a decline in revenue for its television network but its radio and outdoor assets remain resilient showing 41% and 3% growth, respectively in the first quarter of the year.

Datuk Johan Jaaffar, recently appointed executive chairman, MPB admitted the first quarter was an extremely challenging period with revenue being affected by businesses reducing or delaying advertising spend.

"Despite our extensive efforts to stringently control costs, given the mostly fixed cost nature of our operations and, the decline in revenue inevitably had an impact on our bottom line," he said.

Despite its poor performance on its TV network - TV3, 8tv, ntv7 and TV9 - MPB achieved a combined audience share of 52% amongst all Malaysian in the first quarter of 2009.

MPB registered loss of RM23.23 million after tax and minority interest, for the first quarter ended March 31, 2009 - its first loss since its inception in 2003 compared to a net profit of RM17.06 million in the previous corresponding quarter.

MPB also incurred a loss of RM13.3 million as part if its share of losses in its seed asset investment in the Philippines. The investment has been earmarked to be transferred to its proposed Media Fund, aimed at investing in regional media assets but has been delayed because of the economic slump.

Abdul Rahman Ahmad, MPB's group managing director and CEO said he expects the situation to remain but hopes the domestic economy will improve in the later part of the year.

"Further, the fundamentals of our Group remains strong and our strategy to diversify our earnings through expansion into other media such as radio and outdoor will provide some revenue and earnings protections.

"We remain confident that given our leadership position across all media platforms, MPB is well positioned to take advantage of any economic upswing and the corresponding higher advertising expenditure when the time comes," he added.

In other news, Abdul Rahman who has been with MPB since 2001, announced he was ending his tenure upon the conclusion of his present contract in August.

Current CEO of TV3, Datuk Amrin Awaluddin has been appointed as Abdul Rahman's successor.

MPB's flagship station TV3 will now come under Datuk Seri Farid Ridzuan, group CEO of TV Networks and MPB International who will continue in his current capacity to oversee all MPB television networks, content and international operations.