Media Prima Bhd posted a net profit of RM4.2 million for the first quarter (Q1) ended March 31, 2021 (FY21), reversing a net loss of RM30 million in the same quarter last year.
Revenue increased by 7% year-on-year (YoY) to RM254.5 million in the period backed by revenue growth from its broadcasting, home shopping and digital media segments, the media conglomerate stated in a statement on 27 May.
The results mark Media Prima’s third consecutive profitable quarter and its first Q1 profit since 2016.
Group executive director Rafiq Razali said it began 2021 on a positive foot, recording three consecutive profit while narrowing losses across some of Its platforms.
“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.
“The cost optimisation initiatives we undertook in 2020 allows us to operate at a more efficient level,” he said.
Media Prima will continue to unlock synergies across its businesses and find out-of-the-box ways to leverage the strengths of its media platforms to meet evolving consumer trends.
“As we grow, we recognise that our 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,” Rafiq said.
Its broadcasting business posted a profit after tax (PAT) of RM10.7 million in 1Q compared to losses of RM18.7 million in the comparative quarter last year.
This was achieved on the back of a 16% YoY increase in revenue to RM92.5 million due to stronger advertising revenue by its integrated sales business under Media Prima Omnia which was launched in April 2020.
Its home shopping segment WOWSHOP on the other hand, recorded a PAT of RM2.5 million on the back of a 19% increase YoY in revenue for the period.
In the three months under review, WOWSHOP registered over 171,000 new customers, bringing it to a total of over 2.6 million registered customers since its launch in 2016. Sales from its e-commerce and mobile commerce platforms have increased to over 60% of its total sales in 1Q21.
Besides that, REV Media Group – Media Prima’s digital media arm recorded a PAT of RM600,000 in 1Q, reversing losses of RM70,000 in 1Q20. Revenue for this segment improved by 11% YoY to RM19.3 million.
Despite the continued challenges affecting the industry, its publishing segment (The New Straits Times Press and Print Towers) narrowed losses by 97% YoY in the 1Q. The group remains hopeful of recovery for this segment in the remaining quarters of 2021 as the economy begins to recover from the effects of the Covid-19 pandemic.
Media Prima closed 1 sen or 1.55% higher at 65.5 sen today, valuing the group at RM715.43 million.