Media Prima Berhad proudly announced a 14% revenue increase yesterday for the first nine months of 2020 (9MFY20), which brings its revenue to RM60.6 million against RM53.2 million in the corresponding period.
According to the group, its on-going business transformation initiatives involved revising revenue models, reducing cost inefficiencies, and consolidation of assets to solidify the focus of each platform. In July this year, the group consolidated its digital and commerce brands under REV Media Group and WOWSHOP respectively, in order to achieve synergies and solidify its market position.
“In the last few months, we have made strategic decisions to drive the next phase of Media Prima’s business transformation,” Group Chairman of Media Prima, Datuk Syed Hussian Aljunid said. “Despite the ongoing challenges of the pandemic, we managed to build on the success of WOWSHOP’s popularity as seen in its performance this quarter.”
Datuk Syed also added that WOWSHOP’s strong performance in the last few months validates the group’s decision to fully acquire the business and reaffirmed the group’s importance to customers during the global pandemic for more than just their commerce needs.
For 9MFY20, WOWSHOP posted a net profit of RM9.5 million and a 36% increase in revenue against the previous year. To date, WOWSHOP has over 2.3 million customers while its e-commerce and mobile commerce platforms contributed over 53% of its total sales in the nine months.
According to The Edge Markets, “AmInvestment Bank Research has upgraded Media Prima to “buy” from “hold”, as it believed the group is seeing benefits from its previous Odyssey transformation plan to grow commerce and digital revenues.”
“While these are extremely difficult times, they are a reminder of our responsibility to Malaysians as the leading and largest fully integrated media group,” Datuk Syed said. “With our scale, we are able to make a big difference and positive impact in people’s lives.”