Media Prima Optimistic Of Profitable FY 2012

KUALA LUMPUR, April 19 (Bernama) -- Media Prima Bhd is optimistic of delivering a profitable current financial year driven by upcoming global and domestic events as well as expansion of content, distribution medium and non-advertisement revenues, says Group Managing Director Amrin Awaluddin. He said the group would continue to maintain its industry leadership position as the media powerhouse and invest prudently to maintain sustainable growth in revenue and earnings performance. "The first quarter this year has been slow compared to other years as advertisers have been very cautious due to the business environment, but it's too early to say. "In the past during the 2008 crisis when businesses globally faced negative growth, notwithstanding the recession period, adex (advertisement expenditure) did well due to events suce as the Euro (Cup) and Beijing Olympics. "Hopefully this year, upcoming events such as Euro 2012, the London Olympics and Malaysia's forthcoming general elections will contribute positively to adex," he told reporters after the group's annual general meeting. The group posted a lower pre-tax profit of RM279.5 million (US$91.03 million) in the financial year ended Dec 31, 2011 against RM295.3 million (US$96.17 million) in 2010. It recorded its highest revenue of RM1.622 billion (US$528.25 million) compared to RM1.547 billion (US$503.83 million) previously. To see sustainable, Amrin said Media Prima would follow such strategies as investing in content in all platforms, increasing revenue contribution from distribution via more platforms, and regional expansion. In terms of content, he said the group would focus investments in radio, TV, newspapers or online to ensure all its media are in the number one or two position in the specific target markets "as so far our revenue focus was only on advertisement". Currently, advertisement contributes 95 per cent to Media Prima's revenue. "This year, in the move to increase our distribution contribution to growth, we want to expand by going into other areas such as content and pay channels, and hopefully, in the future, into pay tv, online and mobile devices," he added. Five of Media Prima's channels are now delivered via Internet Protocol Television on HyppTV over Telekom Malaysia's UniFi platform. Meanwhile, on operations, Media Prima expects to reap further benefits via regional expansion in content distribution, as currently the Malaysian operations contribute between 95 per cent and 99 per cent to its growth. On mergers and acquisitions, Amrin said the group would continue to be on the lookout for media-related opportunities with reasonable evaluation and pricing as well as earnings, and that complement the group's business. -- BERNAMA