Media Prima braces for challenging year ahead

Integrated media group Media Prima has reported revenue of RM304.1million for its first quarter, (1QFY16). Profit after tax stands at RM17.2million, compared to RM19.4 million the previous corresponding period.This was largely attributed to core advertising revenue and newspaper sales declining. However the company said it is now aggressively seeking new opportunities to grow its non-traditional revenue streams.Datuk Seri FD Iskandar, group chairman of Media Prima said the rapid changes in the media industry has presented the Group with various opportunities for new revenue streams while it consolidates its market share in the core advertising revenue.The Group had in 2016 launched a number of key ventures that are ‘Business to Consumer’ in nature such as its home shopping platform, CJ Wow Shop, the revamped online video streaming subscription service, “tonton”, plus a foray into the apps and games applications for mobile users.“The Group’s anticipation of a prolonged period of market stagnation was proven true, with a flat or lower advertising revenue recorded by most of our media platforms. Within the media industry, factors such as customer fragmentation, technological advancements, shift in traditional advertising to digital media advertising and increased competition from global media players continued to challenge the Group during the first quarter of 2016,” he said.According to Datuk Seri FD Iskandar, the expected outlook for 2016 remains challenging as market sentiment remain cautious in view of the current economic condition and the rising cost of living."The industry players are anticipating a single digit growth in Adex this year, as businesses struggle to optimise their advertising and promotion budgets. Our new ventures in non-traditional media is set to slowly complement our existing traditional business, which is currently exposed to the unsettling economic and market sentiments,” added Dato’ Sri Amrin Awaluddin, group managing director of Media Prima said.