KUALA LUMPUR: Media Prima Bhd’s move to optimise printing plant capacity and unlock potential cost savings while investing in digital expansion has helped sustain the group’s long-term growth.
“Last year, we restructured our print operations as more of our consumers migrate to our digital products such as the electronic version of our newspapers,” said group managing director Datuk Seri Amrin Awaluddin.
He said The New Straits Times Press (M) Bhd (NSTP) implemented the restructuring of its printing manufacturing operations and implemented a one-off restructuring expenses of RM97.9 million.
Last year, Media Prima slipped into a RM59.2 million net loss compared with RM138.72 million net profit posted in 2015.
Group revenue last year fell 10 per cent to RM1.29 billion from RM1.43 billion.
Amrin said revenue contribution from home shopping venture CJ Wow Shop surpassed RM60 million, and mitigated the decline in free-to-air television advertising revenue for Media Prima Television Network.
The television platform posted 93 per cent decline in net profit to RM5.2 million last year.
Media Prima Radio Network (MPRN) and Big Tree Outdoor (BTO) both recorded one per cent growth in revenue year-on-year.
Last year, MPRN recorded RM68.4 million in revenue against RM67.7 million in 2015, while BTO secured RM158.7 million in revenue against RM157.6 million.
MPRN’s lower operating expenses helped improve its net profit by 40 per cent.
The group’s digital media business, led by Media Prima Digital, recorded a 20 per cent increase in revenue to RM32.5 million from RM27.1 million in 2015.
Media Prima’s print and content creation, led by NSTP and Primeworks Studio, was impacted by the challenging operating environment, posting a 23 per cent and four per cent decline in revenue of RM415.5 million and RM115.3 million, respectively, from 2015.
On this year’s prospects, Amrin said Media Prima will continue to face economic uncertainties, consumer consumption fragmentation, a shift in adex to digital platforms and increasing competition in the media landscape.
Media Prima group chairman Datuk Seri FD Iskandar said the board has recommended a final single-tier dividend of four sen, subject to shareholders’ approval.