Media Prima Returns To The Black In Q1 With 3rd Consecutive Quarterly Profit
The first quarter, which ended 31 March 2021, has brought Media Prima Berhad back to the black with a net profit of RM4.2 million
The profit, which reversed a net loss of RM30 million in the same quarter last year, is driven by higher revenue and lower operating expenses, Media Prima said in a press statement.
The results mark the Group's third consecutive profitable quarter and its first Q1 profit since 2016.
According to the Group, its revenue increased by 7% to RM254.5 million against RM238.4 million a year ago, backed by revenue growth from its broadcasting, home shopping, and digital media segments.
It posted a net profit of RM10.7 million in broadcasting for the first quarter, from losses of RM18.7 million in the comparative quarter last year.
The Group stated that this was achieved on the back of a 16% revenue increase to RM92.5 million in the first quarter due to stronger advertising revenue in the same period, driven by the success of its integrated sales business under Media Prima Omnia which was launched in April last year.
Meanwhile, its digital media arm, REV Media Group, posted a net profit of RM0.6 million in the first quarter
The profit reversed losses of RM0.07 million in the same quarter last year.
Revenue for this segment also improved 11% to RM19.3 million.
REV Media stamped its position as Malaysia's leading digital company by winning two awards in the first quarter, according to the Group.
In March last year, the Group also launched a new pay-per-view movie streaming service called 'tonton CINEMA', which, the Group said, synergises REV Media's digital capabilities.
On the other hand, its publishing segment, The New Straits Times Press and Print Towers, narrowed losses by 97% against the comparative quarter, amidst the continued challenges affecting the industry.
According to Group Chairman Datuk Syed Hussian Aljunid, the results mark a significant turnaround for Media Prima, given how the COVID-19 pandemic has heavily impacted the economy and industry
"Our strategic actions to transform our business in 2020 have built a stronger foundation for us to not only confront the challenges better, but to achieve greater long-term growth," he said in the statement.
"We are especially pleased with our Q1 performance as it is traditionally a tough quarter for the Group. We look forward to better days ahead with the ongoing vaccine rollout and while we are hopeful for corporate recovery, we will continue to keep a close watch on operational efficiencies."
Group executive director Rafiq Razali also noted how the Group began 2021 on a positive foot by posting three consecutive profit
"Revenue from advertising, newspaper printing and distribution, and content sales have improved, thanks to our team who demonstrated creativity, flexibility, and resilience during an incredibly challenging period," Rafiq said.
"The cost optimisation initiatives we undertook in 2020 allows us to operate at a more efficient level. Forging ahead, we will continue to unlock synergies across our businesses and find out-of-the-box ways to leverage the strengths of our media platforms to meet evolving consumer trends."
He added that Media Prima recognises that as it grows, its responsibilities increase too.
"While we are making good progress in our financial performance, we still have a lot more to do in the areas of sustainability, and how our businesses can positively contribute back to the environment and our communities. As Malaysia’s leading integrated media company, this will remain a top priority."
Last year, Media Prima Digital and its subsidiary REV Asia, under a corporate rebranding initiative, became REV Media Group: