Media Prima narrows net loss in Q3 on lower restructuring expense

PETALING JAYA: Media Prima Bhd’s net loss narrowed to RM101.09 million in the third quarter ended Sept 30, 2017 from RM109.36 million a year ago due to lower restructuring expenses.
In a filing with Bursa Malaysia, the group said its restructuring expenses stood at RM52.25 million compared with RM104.57 million a year ago.
Revenue for the quarter fell 8.92% to RM288.51 million from RM316.76 million a year ago, mainly due to the declining trend of core advertising revenue and early retirement scheme (ERS) payment of RM52.3 million.
During the quarter, revenue declined across several business platforms including television networks, print media, outdoor media and radio networks while digital media, content creation and home shopping recorded higher revenues.
However for the nine months ended Sept 30, 2017, net loss widened to RM272.46 million from RM64.19 million a year ago due to the impairment of investment in an associate and ERS payment in August 2017.
Revenue for the period fell 8.34% to RM889.48 million from RM970.37 million a year ago, due to lower advertising and newspaper sales as the shift to digital media significantly affected the group’s traditional media business.
The group expects advertising expenditure and media consumption to continue shifting towards digital for the rest of the year.
“To remain resilient and relevant, the group is committed to its transformation journey in defending traditional revenue sources and increasing efforts in growing new revenue streams. The foundation for these efforts are placed on several key areas which include market leadership in broadcast, OTT content and digital publishing,” it said.
The group is also focused on growing commerce revenue via integrated media and expansion beyond Malaysia while prioritising cost management.
Media Prima’s share price rose 1.5 sen or 2.21% to close at 69.5 sen with a total of 2.24 million shares traded.