Media Prima reported a 12% decrease in revenue for the third quarter of 2017 ended 30 September 2017 to RM288.5 million, as compared to the previous quarter. It also incurred a Loss After Tax of RM105.2 million for Q3 2017 due to the decline trend of core advertising revenue.
According to The Star, Media Prima announced that its television and print segments dipped by approximately one quarter. However, it did record significant growth in digital advertising revenue during the first nine months of 2017 (M9FY17 or YTD17). The New Straits Times Press and Media Prima Radio Networks witnessed over 100% growth in digital revenue as compared to 2016. Meanwhile, revenue for Media Prima's consumer subscription-based services such as tonton also grew by 27%.
According to group MD Datuk Kamal Khalid (pictured), Media Prima is optimistic that the business initiatives unveiled under its business transformation plan in 2016, will be the catalyst for future growth. Under the plan, Media Prima's revenue contributions from digital, non-traditional advertising and commerce doubled during M9FY17, as compared to the same period in 2016.
Combined revenues from digital advertising, home shopping, e-commerce and subscription based OTT service increased from RM50 million last year to RM123 million in 2017. Media Prima's CJ Wow Shop has been a significant contributor to the group's revenue, recording RM92.9 million for M9FY17. According to Khalid, Media Prima intends to increase CJ Wow Shop's exposure to further tap Malaysia's growing e-commerce and home shopping markets. The group is also considering diversifying into more local product offerings.
Khalid added that while revenue contributions from the new digital and commerce initiatives have yet to offset the revenue decline by the group’s traditional businesses, Media Prima believes it is a step in the right direction. It will continue with its business transformation efforts and further grow and monetise its strong digital reach.
“The group has been implementing its new business initiatives and made key structural changes within the organisation that includes organisational restructuring, manpower rightsizing, reducing print manufacturing facilities while strategically investing in digital publishing capabilities through the strategic acquisition of Rev Asia in August this year. We have also ventured into new markets abroad, which is another important component of our transformation plan,” Khalid said.
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