The group's Net Revenue softened by 5.3% to RM335.28 million for the first quarter ended 31 March 2012 due to a decrease in advertising expenditure for the first quarter of 2012 as the market reacts to global economic crisis which hit Europe and North America.
"As anticipated, the first quarter of 2012 was indeed a very challenging period for the Group as perceived economic performance influences spending trend and confidence of our clients," said Datuk Johan Jaaffar, Chairman of Media Prima Berhad.
Not withstanding the softening Adex and the global economic crisis, the Group registered PATAMI of RM20.79 million for first quarter 2012. "Managing costs through reasonable limit of growth or flat growth, if not lower, has cushioned us from severe repercussion from the softening Adex," added Datuk Johan.
Media Prima's Outdoor Media recorded revenue of RM38 million for the first quarter 2012 representing an impressive growth of 15% over corresponding period in 2011. Its Radio Networks recorded a revenue growth by 10% to RM13.8 million over its corresponding 2011's results. The group's print division, NSTP, registered a growth in revenue by 2% to RM158 million for first quarter 2012 against a backdrop of an overall market decline in print Adex. Media Prima's New Media division recorded a record revenue growth by 57% to RM4.4 million for first quarter 2012 from corresponding period 2011.
Media Prima's Television Networks recorded RM119 million revenue for the first quarter 2012, lower by 20% against 2011. This is driven by the macroeconomic sentiments, coupled with the traditional slow advertisement spending at the beginning of each year, which will normally accelerate from quarter two onwards.
According to Dato' Amrin Awaluddin, Group Managing Director of Media Prima Berhad, "Despite the softening of revenue for the first quarter of this year, Media Prima's asset and business outlook remains strong. We are optimistic of the remaining part of the year with special events such as Olympics 2012, UEFA Euro 2012 and expectation of General Election taking place in the next quarters."
"The domestic economy is expected to record positive growth, we are optimistic of an improved outlook for this year for both consumers and advertisers. We will continue to focus on cost management through operational efficiency whilst exploring new sources of revenue leveraging on our strength of delivering enthralling content to an audience of 24 million daily," added Dato' Amrin.