Media groups report strong profit

Hong Kong - Next Media and Media Chinese International have recorded solid profit gains in the year to 31 March, citing circulation gains and healthy ad revenues.

Media Chinese International, the parent company of Ming Pao Enterprise, has reported a 63.5% jump in profit, mainly due to an increase in revenue from the group's publishing businesses in Malaysia and the closure of its Shenzhen sales office in January.

Media Chinese International, was created last month after the merger of Ming Pao, Sin Chew Media Corp and Nanyang Press Holdings. The group's consolidated profit before income tax hit US$43.7 million, representing a year-on-year increase of almost US$17 million, or 63.5%.

Meanwhile Next Media, publisher of Apple Daily, Next Magazine and Sudden Magazine, said revenue for the year to 31 March 2008 jumped 7.8% to HK$3.5 billion, with net profit up a strong 52.2% to $521 million.

Next Media's flagship title Apple Daily saw a 3.8% increase in circulation revenue with advertising revenue up 2.6% to HK$668.5 million.

In a statement, Next said it was confident that Apple Daily will continue to be one of its most important revenue sources in the coming years, with a focus on targeted demographic profiles for Hong Kong's major advertisers.

Next Media's books and magazine division continued to make a sizeable contribution to the group, adding total revenues of HK$872.7 million, 4.8% higher than the previous year.

The company's internet division continued to find form with revenue up 26% to HK$39.4 million, compared with HK$31.3 million the previous year. This consisted of subscription fees, advertising revenue and content licensing payments.

Next has also established a new Research & Development unit within the its online division to develop the scope and quality of its online presence.

The company is currently working on an online TV platform called Apple Action News via its Apple Daily platform.