Media Prima is undergoing another round of job cuts at selected units to address cost inefficiencies arising from unnecessary work duplication. It is also revising revenue models and corresponding cost management. The move comes as the group is expediting the next phase of its business transformation to create a "robust and sustainable business model for the medium and long term.
"Disruptive changes in the media sector and challenging macroeconomic conditions, exacerbated further by unknown variables surrounding the COVID-19 pandemic, have compelled the group to expedite the next phase of its transformation exercise which will include revising revenue models and corresponding cost management," the group said.
Media Prima said it will ensure that affected employees will receive a fair and equitable compensation package governed by the law and respective unions’ collective agreements which will be paid upon the fulfilment of all legal requirements. Earlier this week, the group witnessed Loo Took Gee and Haji Ismail Bin Haji Omar resign from their posts as independent and non-executive directors to focus on other commitments. Media Prima declined to comment on A+M's queries.
Last year, Media Prima carried out a round of job cuts as part of the next phase of its business transformation exercise announced on 1 November. The statement was released shortly after Malay Mail reported earlier that Media Prima will allegedly cut the number of editorial staff at the New Straits Times, Berita Harian, and Harian Metro by half. It added that Media Prima's broadcasting arm is expected to be the most heavily impacted by the job cuts.
Meanwhile, Media Prima Television Network recently saw its CEO Johan Ishak leave for Awesome Media Network as MD. In his new role, Johan is responsible for the overall operations of Awesome TV and strengthening its core business of providing high quality fresh content, in-line with the company’s long -term strategy and goal for the channel.
For the first quarter of 2020 (Q1 2020), Media Prima posted a revenue of RM238.4 million, a marginal decline from RM239.1 million during Q1 2019. Group digital revenue improved by 9% to RM18.9 million on the back of a 12% digital advertising growth against the comparative period. Commerce revenue grew 24% in Q1 2020, driven by its home shopping network CJ Wow Shop which recorded a 18% revenue increase and 27% increase in customers. CJ Wow Shop has also expanded its online reach with its web and mobile platforms contributing more than 40% of its Q1 2020 total sales, the company said.
Group traditional revenue dropped by 7% due to cautious spending by advertisers. Circulation revenue improved by 12% for the three months under review, reflecting the positive outcome of measures undertaken to improve efficiency in this segment. Primeworks Studios registered a 13% increase in revenue mainly due to a successful film release and higher advertiser content revenue from external productions in the quarter.