Media Prima leans on non-advertising revenue to stay in the green

Media Prima is maintaining a prudent outlook for its 2026 financial year, "due to anticipated pressure on advertising expenditure," as it announces its first quarter results (Q1FY2026).

The integrated media group recorded a 12.5% y-o-y increase in net profit from RM1.4 million the corresponding quarter last year, to RM1.6 million in the first quarter ended 30 September. This is on the back of a 2% increase in revenue to RM198.9 million, from RM194.9 million a year before. This growth in revenue was mainly driven by growth in non-advertising income, offsetting a decline in advertising revenue amid evolving market conditions.

Don't miss: Star Media Group's quarterly loss widens on lower ad income

Based on its filing with Bursa Malaysia, Media Prima said in comparing its y-o-y Q1 performance, its home shopping segment recorded a 21% increase in revenue due to stronger sales across TV; its Big Tree out-of-home (OOH) segment's revenue rose 7% on higher earnings; its broadcasting segment saw a 4% growth due to a rise in non-advertising revenue streams.

However, Omnia's revenue dropped 1%; its publishing segment revenue dropped 5% on lower advertising and non-advertising revenue streams; its digital media segment also fell 9% on lower ad revenue. 

In comparison with the immediate preceding quarter, Q4FY2025, Media Prima logged a 76% fall in profit before tax, from RM17.4 million to RM4.2 million in Q1FY2026. Its revenue dropped 11% from RM222.5 million to RM198.9 million. 

Despite its prudent outlook for FY2026, the group said in its Bursa filing that  it remains dedicated to executing the final year of its three-year strategic roadmap. "This roadmap is centered on content quality enhancement, strategic inventory premiumisation, and the active identification and development of new revenue streams. A comprehensive review of this roadmap will subsequently guide the group's next strategic phase," it said. 

Meanwhile, Media Prima group chairman Syed Hussian Aljunid assured that the group continues to demonstrate resilience amid shifting market dynamics, and the first quarter results depict the group's effectiveness in integrated strategy and ability to adapt in the rapidly changing media landscape.

"Growth in non-advertising revenue shows that the group's efforts to diversify income streams are gaining traction, supported by collaboration across all divisions and continued investment in digital, content, and data capabilities," said Syed. 

The company publishes newspapers including New Straits Times, Berita Harian and Harian Metro; and broadcasts TV3 and 8TV; as well as radio stations Hot FM and Fly FM. Media Prima also runs home shopping platform WowShop, content production company Primeworks Studios, owns digital publisher REV Media Group, and provides integrated marketing solutions via Media Prima OMNiA. 

Just yesterday, A+M reported that Star Media Group (SMG) recorded a net loss of RM3.62 million for the third quarter ended 30 September (Q3FY2025), in comparison with the profit of RM2.5 million it made for the same three-month period in 2024. This is on the back of a decline in revenue by 20% y-o-y to RM47.9 million versus RM59.6 million due to weaker advertising demand.

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