After a dismal Financial Year for 2017 (FY17), Media Prima Berhad is now enjoying a turnaround; after all, it has posted a profit after tax of RM59 million for FY18. This is a sharp reversal of the losses it experienced in 2017, approximately RM669.7 million.
This achievement comes on the back of successful revenue diversification and the execution of asset-light strategies. Of course, this is in-line with Media Prima’s transformation mission.
According to Media Prima, the FY18 PAT gain comes directly from the one-off gain of RM133.1 million; this is after the completion of its sale and lease-back arrangements. The turnaround is a positive thing for the content conglomerate as the media industry continues to face various socio-economic challenges.
Digital and commerce revenues for FY18 saw a 76% increase to RM301 million. This positive result has cushioned the revenue decline from Media Prima’s traditional business segments. All in all, it’s a 1% drop in FY18, a massive change from the 7% decline a year before.
Media Prima believes this positive posting is a testament to the progress it is seeing for all its ongoing initiatives. In fact, digital reach and advertising revenue is still growing for the various platforms it’s managing. As is, the overall digital revenue has record growths, reaching RM87.9 million for FY18. This is almost double from what it has achieved for FY17.
Strategic Steps and Wins
For Media Prima to achieve this big push, multiple steps have been taken. This includes putting major focus on its collaboration with YouTube; the move saw Media Prima channels on the Google streaming platform grow to 1.1 billion for 2018.
Major moves to acquire content platforms, like taking a 25% stake in Monster Scape, owner of TanTanNews, also contributed to the revenue growth. There is also the deployment of a full digital suite for out-of-home advertising subsidiary, Big Tree. Just as critical is the major push for the home shopping segment, CJ WOO SHOP, as it saw more user growth. Coincidentally, it has generated a total sales of RM213.1 million.
Going by what Media Prima has in place and is looking to rollout for 2019, there will be more digital initiatives coming online. Its Group Managing Director, Datuk Kamal Khalid, believes this positive result and progressive push will continue; especially, since it now has greater agility and gain more competitive edges.
Text by: Victor Yap
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The APPIES is an annual event that presents a rare opportunity for creative, media, digital and marketing agencies or brands to present their best campaigns to the industry.
This is the only event where Live Presentations meets Live Judging.
Similar to TED Talks, The APPIES is the chance for great presenters with outstanding work to show it off to some of the industry’s most important industry leaders.
This year’s winners will receive Gold, Silver or Bronze trophies for 21 categories, and 6 special Best of Best categories (red trophies) that require no submissions!
Campaign entries must have run between June 2023 to May 2024
Submissions Deadline
30th June 2024
APPIES Festival – Judging & Presentations
11th – 12th July 2024 (Malaysia)
