Media Chinese International: Navigating Shifting Sands in Q4 FY2025
Hello, fellow investors! Today, we’re diving into the latest financial report from Media Chinese International Limited (MCI), a familiar name in the Malaysian media landscape. The company has just released its unaudited condensed consolidated results for the fourth quarter and full financial year ended 31 March 2025. This report offers a compelling look at how a traditional media giant is adapting to an increasingly digital world, highlighting both the challenges and the strategic moves being made.
While the fourth quarter saw a slight dip in overall turnover, the full financial year painted a picture of resilience with a notable increase in revenue. Perhaps most importantly for shareholders, the Board has announced an interim dividend, signaling a continued commitment to shareholder returns. Let’s break down the numbers and understand the story behind them.
Core Financial Highlights: A Mixed Bag, But Progress
MCI’s latest report reveals a nuanced financial performance. While the fourth quarter faced headwinds, the full fiscal year demonstrates the Group’s adaptability and strategic efforts. Let’s look at the key figures:
Fourth Quarter Performance (Q4 FY2025 vs. Q4 FY2024)
Q4 FY2025
Turnover: US$32,948,000
Loss Before Income Tax: US$3,296,000
Adjusted EBITDA Loss: US$2,474,000
Loss Per Share (Basic): US(0.21) cents
Q4 FY2024
Turnover: US$33,173,000
Loss Before Income Tax: US$7,204,000
Adjusted EBITDA: US$1,980,000
Loss Per Share (Basic): US(0.41) cents
For the fourth quarter, MCI’s turnover saw a marginal decrease of 0.7% to US$32.95 million. However, the Group significantly narrowed its loss before income tax by 54.2%, reporting a loss of US$3.30 million compared to US$7.20 million in the same quarter last year. This improvement was largely due to a much lower provision for impairment of property, plant, and equipment and intangible assets (US$38,000 this quarter vs. US$8.06 million last year). Excluding this provision, the underlying performance shows a shift from a profit of US$860,000 last year to a loss of US$3.26 million this quarter, reflecting a tougher operating environment and muted consumer demand.
Full Year Performance (FY2025 vs. FY2024)
FY2025
Turnover: US$157,531,000
Loss Before Income Tax: US$7,463,000
Adjusted EBITDA Loss: US$4,325,000
Loss Per Share (Basic): US(0.46) cents
FY2024
Turnover: US$147,018,000
Loss Before Income Tax: US$13,597,000
Adjusted EBITDA Loss: US$774,000
Loss Per Share (Basic): US(0.76) cents
On a full-year basis, the Group’s turnover increased by a healthy 7.2% to US$157.53 million. The loss before income tax also improved significantly by 45.1% to US$7.46 million, again primarily due to the lower impairment provisions. However, similar to the quarterly trend, the underlying loss before income tax (excluding impairment) widened by 34.2% to US$7.43 million, impacted by unfavorable fair value changes on investment properties and quoted investments.
Currency Impact: The strengthening of the Malaysian Ringgit (RM) against the US Dollar and the weakening of the Canadian Dollar (C$) against the US Dollar had positive currency impacts on the Group’s turnover and loss before income tax, especially for the full year.
Segmental Performance: Travel Soars, Publishing Faces Headwinds
MCI’s diverse business units showed contrasting fortunes in the latest quarter.
Publishing and Printing Segment
This segment, encompassing Malaysia, Hong Kong & Taiwan, and North America, saw its overall turnover decline by 8.9% to US$23.19 million in Q4 FY2025. For the full year, it decreased by 4.4% to US$102.73 million.
- Malaysia Operations: Turnover decreased by 3.8% to US$14.72 million in Q4, mainly due to weaker consumer sentiment and intense competition for advertising revenue from digital platforms. Despite this, the segment’s loss before income tax significantly narrowed to US$336,000 from US$4.96 million a year ago, primarily due to the absence of last year’s large impairment provision. Excluding this, the underlying performance declined due to lower advertising revenue and unfavorable fair value changes.
- Hong Kong and Taiwan Operations: Turnover dropped by 13.9% to US$7.14 million in Q4. This was largely attributed to Hong Kong consumers preferring to spend weekends in Mainland China, impacting retail businesses and advertising revenue. Consequently, the segment’s loss before income tax widened to US$2.53 million from US$1.33 million in the prior year quarter.
- North America Operations: Revenue decreased by 28.6% to US$1.34 million in Q4. However, the segment’s loss before income tax narrowed significantly to US$131,000 from US$502,000, driven by cost savings and funding received from Google for news content.
Travel and Travel Related Services
This segment continued its impressive growth trajectory. In Q4 FY2025, turnover surged by 26.5% to US$9.75 million, driven by the recovery in global travel and increased holiday trips. Luxury trips to Mainland China, Europe, and other parts of Asia were particularly well-received. As a result, the segment’s loss before income tax narrowed to US$171,000 from US$248,000 in the same quarter last year.
For the full financial year, the travel segment’s turnover soared by 38.3% to US$54.81 million, significantly contributing to the Group’s overall revenue growth.
Financial Health and Cash Flow
MCI’s financial position as at 31 March 2025 shows a robust cash position. The Group reported cash and cash equivalents of US$68.61 million, a slight increase from US$68.10 million a year prior. Short-term bank deposits also grew to US$36.99 million from US$27.42 million, indicating strong liquidity.
The net gearing ratio of the Group remained at nil as at 31 March 2025, reflecting a healthy balance sheet with no net debt. While cash flow from operations was negative this year, the overall financial structure appears stable.
Risks and Prospects: Adapting to a Dynamic Landscape
The operating environment for MCI remains complex. Geopolitical tensions, global trade disruptions, and persistent high interest rates continue to create economic volatility. For the media and publishing business, digital disruption and the rise of AI-based advertising solutions are fundamentally reshaping traditional revenue models, exerting increasing pressure on conventional income streams.
Despite these challenges, the Group sees significant growth opportunities, particularly in its travel segment. The easing of visa restrictions in many countries and more competitive airfare offerings are expected to continue supporting this growth. MCI also highlights its strong relationships with business partners, which enable it to curate unique and exclusive travel itineraries, enhancing its competitiveness.
To navigate this dynamic landscape and ensure sustained growth, MCI is focusing on several strategic areas:
- Enhancing Operational Efficiency: Leveraging technology to streamline processes and improve productivity.
- Maintaining Strict Cost Discipline: A crucial step in a challenging revenue environment.
- Leveraging Favourable Newsprint Pricing: Capitalizing on potential cost advantages in its core publishing business.
- Driving Innovation: Continuously evolving its content and platform offerings to stay relevant in the digital age.
Interim Dividend Announcement
In a positive development for shareholders, the Board of Directors has declared an interim dividend of US0.10 cents per ordinary share for the year ended 31 March 2025. This dividend will be payable on 8 July 2025 to shareholders on record as of 18 June 2025. While this is a slight decrease from the US0.15 cents per share paid for the previous year, it still reflects the company’s commitment to returning value to its shareholders amidst a challenging period.
For Malaysian shareholders, this translates to approximately 0.4507 sen per share (using an exchange rate of US$1 to RM4.5074).
Summary and
Media Chinese International’s latest financial report paints a picture of a company in transition. While its traditional publishing and printing segments continue to face significant pressure from digital disruption and intense competition, the travel segment is emerging as a strong growth driver, benefiting from the resurgence in global tourism. The Group’s ability to narrow its quarterly loss and increase full-year turnover, albeit with underlying challenges, demonstrates its ongoing efforts to adapt.
Key points from the report include:
- Full-year turnover growth driven by the strong performance of the travel segment.
- Significant narrowing of quarterly and annual losses due to lower impairment provisions, though underlying profitability remains a concern.
- Continued challenges in the publishing and printing business, particularly in Hong Kong and Taiwan, due to shifting consumer habits and digital competition.
- A healthy balance sheet with strong cash reserves and a nil net gearing ratio.
- The declaration of an interim dividend, reaffirming shareholder commitment.
MCI’s strategic focus on operational efficiency, cost control, and content innovation, coupled with the promising outlook for its travel business, will be crucial in navigating the uncertain economic and industry landscape ahead. Investors will likely be watching closely to see how these strategies translate into sustainable profitability.
Your Thoughts?
This report highlights the ongoing transformation within the media industry. Do you think MCI’s focus on its travel segment and digital innovation will be enough to offset the challenges faced by its traditional publishing business in the long run? What are your expectations for the company’s performance in the coming year?
Share your insights and questions in the comments below! Let’s discuss.
