Media Prima Group’s 2nd quarter profits driven by higher ad revenues

Media Prima Berhad posted a profit after tax (“PAT”) of RM12.7 million for the 2nd quarter of 2021, representing a positive swing from a loss after tax (“LAT”) of RM18.0 million in the comparative quarter from last year.

This was achieved on the back of a 24% increase in Group revenue to RM292.4 million in in the second quarter of 2021 as opposed to RM236.3 million in 2020, driven by higher advertising revenue despite the continued challenges linked to the nationwide lockdown due to resurgence of Covid-19 cases.

For the first half of 2021, the Group recorded after tax profits of RM16.8 million against the losses (after taxes) of RM48.0 million in the comparative period of 2020. Group revenue increased by 15% to RM547.0 million during the first half of 2021 from RM474.7 million during the same period in 2020.

The Group’s stronger performance is attributed to higher advertising revenue which increased by 22% in the first half of 2021 from RM280.7 million during the same period of 2020, led by the success of its integrated sales business Media Prima Omnia.

Revenue from Media Prima’s broadcasting segment increased by 43% in the first half of 2021 against the comparative period of 2020, led by a significant growth in television advertising revenue. Media Prima Television Networks remains Malaysia’s leading television network, commanding over 35% of television audience share.

Revenue from the Group’s digital arm, REV Media Group (“REV Media”), grew by 11% to RM41.7 million in the first half of 2021 against RM37.7 million during the same period of last year on the back of strong growth in advertising revenue.

Media Prima’s out-of-home advertising business, Big Tree, unveiled its largest digital out-of-home media, CuBig @ KLCC Junction, which offers anamorphic content capabilities for audiences to view life-like, 3D visuals on extensive digital screen dimensions. CuBig @ KLCC Junction garnered full occupancy during the second quarter of this year, with some clients to be occupying the space until the end of 2021.

Despite the continued challenges affecting the industry, the Group’s publishing segment, The New Straits Times Press (NSTP), defended its overall revenue of the first half. It posted a slight revenue decrease of 4% due to lower newspaper sales, but higher newspaper printing and distribution revenue. For the second quarter, NSTP posted an after taxes profit of RM1.1 million, driven by a 50% increase in advertising revenue against that of 2020, and supported by a more optimal cost structure.

In content sales, Media Prima recorded RM20.7 million in revenue during the first half from RM5.0 million in the corresponding period. This follows Media Prima Television Networks and Primeworks Studios’ collaborations with popular streaming platforms Disney+ Hotstar, iQiyi and WeTV.

In commerce, revenue from WOWSHOP reduced marginally by 1% during the first half of 2021 against the corresponding period, as consumer spending habits towards home shopping remain strong. WOWSHOP posted a profit of RM4.5 million after taxes for the first half of this year.

Overall, this is WOWSHOP’s sixth consecutive profitable quarter since the 1st quarter of 2020. During the 2nd quarter of this year, WOWSHOP registered over 169,000 new customers, bringing it to a total of 2.8 million customers since its launch in 2016.

Datuk Seri (Dr) Syed Hussian Aljunid, Group Chairman of Media Prima, said: “Our results mark yet another strong performance from the Group with our fourth consecutive quarterly profit. We also recorded stronger advertising revenue despite the tougher economic conditions exacerbated by the pandemic.”

“We are pleased with the success of our sales team at Media Prima Omnia, who have illustrated their strength in not just selling advertising space, but in providing sales solutions that cater to the needs of clients”, he added.

Subsequent to the period under review, Media Prima focused on unlocking synergies and leveraging the strengths of its media businesses.

In July, Media Prima Omnia launched its #KitaMalaysia SME packages, in tandem with this year’s National Day celebrations, to promote homegrown products and services through the Group’s platforms.

More recently, the Group rebranded its radio segment as Media Prima Audio to strengthen its standing as a leading radio network. This involved the rebranding of all radio stations and re-strategizing their content and talent line-ups.

Similarly, to reaffirm its standing as a leading television network, Media Prima Television Networks refreshed its scheduling strategy for TV3’s Morning Primetime and TV9’s Early Evening Primetime to keep up with viewers’ demands.

Rafiq Razali, Group Executive Director of Media Prima, said: “Advertising revenue increased across the Group, particularly in television advertising. Our publishing segment posted its first quarterly profit since 2018 and we are committed to sustaining this position through continuous cost optimization initiatives and sourcing for more printing contract opportunities. We also continued to broaden our audience base through our recent landmark deal with Disney+ Hotstar, making our content more accessible to fans of local dramas and films.