Media Prima sees 15% dip in traditional advertising revenue while digital increases

Media Prima's traditional advertising and circulation revenues for?the nine months of its financial period ended?30 September 2019 (9MFY19) dipped 15% and 21% respectively compared to 2018.?According to the financial statement, overall cautious spending contributed to revenue decline across the group's business segment.

Despite this, it still posted a 9% increase in digital and home shopping revenue for the nine months. Media Prima Television Networks? CJ WOW SHOP also remained on the upswing with a 12% increase to RM169.9 million in 9MFY19 against RM151.9 million last year. Quoting Comscore, Media Prima said in the financial statement that it remains Malaysia's top?choice for mobile content and has the third-highest digital audience reach behind Google and Facebook.

The New Straits Times Press? online brand for Harian Metro recorded the highest unique visitors for online news in Malaysia for the third quarter of 2019. According to Comscore, myMetro reached 13.6 million unique visitors from July to September 2019. Meanwhile, the average monthly unique visitors for BH Online and NST Online is 4.2 million and 2.0 million respectively. Media Prima added that?Big Tree also retained its dominant market position as Malaysia?s leading out-of-home solutions provider.?In broadcast media, Media Prima remained Malaysia?s most-watched channels with a 35.2% television audience share.

Meanwhile, Primeworks Studios' (PWS)?Sangkar?climbed high at the Malaysian box office having collected over RM12.0 million after three weeks in cinemas nationwide. The group said that?PWS aims to release two more films this year ??Wira?and?Ejen Ali?the Movie.

Overall, Media Prima posted?RM801.4 million in group revenue for the nine months against RM894.8 million in 2018.?The group recorded a loss after tax of RM79.2 million against a LAT of RM22.1 million in 9MFY18.

MPB 9MFY19 Results Summary

The results come shortly after Media Prima?announced that it will embark on the next phase of its transformation exercise. This includes changing its business model and restructuring internally to enable the group to be sustainable given uncertain macroeconomic conditions and disruptive changes in the global and local media sector. It is also?working closely with union officers?on the execution of the business transformation plan, to ensure the?process is transparent and all obligations to affected employees are given the utmost priority.

Syed Hussian Aljunid, group chairman of Media Prima, said: ?The group?s overall performance continues to be challenged due to the decline in traditional advertising and circulation revenues. As we head into the final months of 2019, we will accelerate the next phase of our transformation to adapt our businesses to the fast-changing conditions in the media sector.?

Kamal Khalid (pictured), group MD of Media Prima, added: ?The group will continue to build on the positive growth achieved by our digital and commerce initiatives while taking measures to further improve our costs and operational efficiencies. The next phase of our business transformation aims to deliver more effective solutions across our various media platforms to meet the evolving demands of the media industry.?

Media Prima recently entered into a partnership with?Sarawak-based news publisher SV News to enhance media services and content in Sarawak. The collaboration involves?SV News? publications?Suara Sarawak?and?New Sarawak Tribune?and will leverage Media Prima?s integrated?media platforms for mass reach and experience in news publishing,?education content, broadcasting operations, content creation and digital consulting.