Core Data Highlights: A Mixed Bag of Performance

Media Prima’s Q3 FY2025 results present a nuanced picture. While overall revenue saw a marginal dip, the Group managed to improve its profit before tax for the quarter, though the nine-month cumulative profit after tax reflects the ongoing market challenges.

Quarterly Performance (3 months ended 31 March 2025 vs 31 March 2024)

For the individual quarter, revenue experienced a marginal 1% reduction, settling at RM211.6 million, compared to RM213.2 million in the same quarter last year. This was primarily due to lower advertising revenue, although an encouraging 11% increase in non-advertising revenue partially cushioned the impact.

Despite the slight revenue dip, the Group’s profit before tax for the quarter significantly improved, more than doubling to RM4.91 million from RM2.45 million in the comparative quarter. This indicates improved operational efficiency or reduced costs in the current quarter.

However, after accounting for taxation, net profit for the current quarter saw a 46% reduction to RM0.997 million, down from RM1.86 million in the comparative quarter. This suggests a higher effective tax rate impacting the bottom line, as noted in the report due to loss-making companies within the Group.

Reflecting the lower net profit, basic and diluted earnings per share for the quarter also decreased to 0.12 sen from 0.22 sen previously.

Cumulative Performance (9 months ended 31 March 2025 vs 31 March 2024)

For the cumulative nine-month period, total revenue declined by 3% to RM634.5 million, primarily driven by a 4% drop in advertising revenue amidst a challenging market environment.

The cumulative nine-month net profit saw a significant decline, falling to RM6.91 million, which is approximately 25% of the prior year’s level. This substantial reduction is attributed to both lower revenue and other operating income.

Segmental Performance: A Closer Look

Understanding Media Prima’s performance requires a dive into its diverse segments:

• Home Shopping: This segment continues to be a bright spot. For the current quarter, revenue surged by 12%, propelled by improved sales during the festive season. Over the nine-month period, it recorded a 7% increase, driven by successful campaigns and new product offerings.
• Broadcasting: The broadcasting segment saw a 6% growth in the current quarter, benefiting from both advertising and non-advertising revenue streams. However, for the nine-month period, despite higher audio advertising revenue mitigating challenges in television network advertising, the segment experienced a 4% decrease in revenue.
• Publishing: Quarterly revenue for Publishing saw a 2% decline, as growth in newspaper printing and distribution partially offset a decrease in advertising revenue. Cumulatively, revenue increased by 1% due to higher newspaper printing and distribution revenue.
• Omnia: This segment’s revenue marginally reduced by 3% in the current quarter and decreased by 4% over the nine-month period, mainly due to lower advertising revenue from Television Networks, partially offset by growth from the Group’s Audio platform.
• Out-of-Home: This segment faced headwinds, with a 5% reduction in revenue for the quarter and a 6% decrease for the nine-month period, primarily due to lower overall display revenue.
• Digital Media: Digital Media posted a 16% lower revenue in the current quarter, attributed to lower advertising and inter-segment shared service revenue. For the nine-month period, revenue declined by 3% due to similar factors.

Financial Health: Balance Sheet & Cash Flow

Media Prima’s financial position remains sound, albeit with some shifts:

The Group’s total assets and equity saw a slight decrease, while total borrowings increased. However, a positive highlight is the robust cash flow from operating activities, which significantly increased to RM162.36 million for the nine-month period, up from RM129.75 million in the comparative period. This indicates strong operational cash generation despite the profit challenges.

Navigating Risks and Charting Future Prospects

Media Prima is acutely aware of the evolving media landscape and economic uncertainties. The Group’s three-year roadmap is a cornerstone of its strategy, focusing on:

• Content Quality Enhancement: Investing in compelling and engaging content to attract and retain audiences.
• Strategic Inventory Premiumisation: Optimising its advertising inventory to command better rates and maximise value.
• Active Identification and Development of New Revenue Streams: Diversifying its income sources beyond traditional advertising.

These initiatives are crucial for building resilience against prevailing market challenges and establishing a robust foundation for medium to long-term sustainable growth. The Group maintains a prudent outlook for the remainder of the financial year, anticipating continued pressure on advertising expenditure.

From a risk perspective, the Group is managing a few legal suits with contingent liabilities amounting to RM0.5 million. Additionally, it has significant capital commitments for property, plant, and equipment, as well as intangible assets, indicating planned investments for future growth.