Media Prima has reported a 21% growth in second quarter revenue for the financial period which ended 30 June 2017 (Q2 FY17), as its core advertising revenue began to gain momentum following a slow start earlier this year. The group recorded a revenue of RM601 million for the six-month period of 2017, which can mainly be attributed to changes in consumer behaviour and digital disruptions that have impacted the media industry in general.
It recently concluded its RM105 million acquisition of REV Asia Holdings, which will “significantly strengthen Media Prima’s digital reach to derive revenue from the growth in digital advertising,” Tan Sri Ismee Ismail (pictured), chairman of Media Prima, said.
Capitalising on the increased demand among consumers for digital content and e-commerce, Media Prima also launched new initiatives to enable new revenue streams and put the focus back into its advertising revenue. Home shopping platform CJ Wow Shop contributed significantly to the group’s revenue, with sales in excess of RM90 million during the first year of operations. Media Prima intends to increase CJ Wow Shop’s exposure to further leverage Malaysia’s growing home shopping and e-commerce market. It also aims to expand by including more local product offerings.
The Group’s out-of-home (OOH) and digital media businesses recorded 10% and 22% growth in revenue respectively during the first six months of 2017. According to Datuk Kamal Khalid, group MD of Media Prima, the launch of new advertising sites along the MRT Sungai Buloh – Kajang Line and the increase in digital content consumption among consumers “bodes well” for both platforms moving forward.
Khalid added that Media Prima will continue to defend its traditional sources of income and increase efforts in growing new revenue streams. Over-the-top (OTT) content, digital publishing and market leadership in broadcast will be the main focus areas for these goals.
Its OTT service tonton recently inked a strategic marketing partnership agreement with DST, a telco in Brunei, to bring the service to the country. This marks its second venture outside of Malaysia this year. Earlier this year, the Group signed a similar deal with Singapore telco Singtel to launch tonton on its video streaming app CAST.
Media Prima Radio Networks (MPRN) also boosted its digital presence by launching podcast platform Ais Kacang and e-commerce service SuperDeals. Both Ais Kacang and SuperDeals offer MPRN new ways to attract advertisers by offering an all-rounded solutions which include on-air and digital exposure.
Primeworks Studios, the content creation subsidiary of Media Prima, is also currently in talks with international content producers to co-produce content. It recently partnered with Netflix to allow its Malaysian customers to now enjoy their “favourite” local films and series on its platform. On the digital publishing front, the group aims to transform its print platform into a leading player in digital publishing, with the focus still on The New Straits Times Press (NSTP) to be a digital-first content provider.
Last month, Media Prima appointed Khalid as the group’s new MD, replacing Datuk Seri Amrin Awaluddin, who has been re-designated as executive director effective 1 August. In addition to his duties, Khalid has also been named the group chief operating officer of Media Prima.