Update Media Prima 4Q profit falls 13% to RM63m, pays 8 sen dividend

Update Media Prima 4Q profit falls 13% to RM63m, pays 8 sen dividend
Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 20 February 2014 18:14

KUALA LUMPUR (Feb 20): Media Prima Bhd reported a 13% fall in fourth quarter net profit from a year earlier as the group contended with a challenging backdrop for its print and digital platforms.

In a statement to the exchange today, Media Prima Bhd said net profit fell to RM63.44 million in the fourth quarter ended December 31, 2013 (4QFY13) from RM73.16 million. Revenue declined to RM451.56 million from RM477.73 million.

Full-year (FY13) net profit, however, rose to RM214.17 million from RM209.31 million a year earlier. Revenue was higher at RM1.72 billion versus RM1.7 billion.

During FY13, Media Prima said its print platform's revenue fell 3% while top lines at other segments rose including television, radio, outdoor and digital platforms.

The digital segment recorded a loss despite revenue rising 35%, according to the firm.

"The group’s complete media offering and leadership position enables the group to remain resilient and relevant by being able to offer comprehensive, customised and integrated solutions to the clients.

"Despite the challenging market environment, the group recorded an increase of 1% and 3% in revenue and profit after tax respectively which are mainly attributable to the increase in the non-traditional advertising revenue," Media Prima said.

Despite weaker 4QFY13 financials, Media Prima plans to pay dividends of eight sen a share for the quarter, comprising a third interim single-tier dividend of three sen besides a final portion of five sen.

Media Prima said the final portion required its shareholders' consent.

The 4QFY13 payouts bring full-year dividends to 14 sen a share.

Media Prima foresees a challenging business landscape this year. The spotlight is on its print operations which includes newspapers under The New Straits Times Press (M) Bhd banner.

Accoding to Media Prima, the print unit will undertake optimal management of newsprint inventories, besides print quality and productivity improvement.

"The group is committed to sustain its industry leadership position and earnings growth through continued investment in quality and relevant content and expanding its reach beyond traditional advertisers on top of leveraging on its media integration to offer complete solution for customised marketing and branding.

"Concurrently, the group will continue to exercise prudent financial and risk management whilst upholding strong corporate governance," Media Prima said .

Despite a challenging outlook, Media Prima said major sporting events this year like the World Cup, Asian Games, and Commonwealth Games, besides Visit Malaysia Year were expected to cushion the impact of a challenging backdrop.