Media and advertising to contribute 20% to KLIG turnover


  • Business
  • Thursday, 29 May 2003

BY SABRY TAHIR

KL Monorail operator KL Infrastru-cture Group Bhd (KLIG), which made its debut on the KLSE main board yesterday, expects its ancillary activity of media and advertising to contribute 20% to projected turnover of RM50mil for the financial year ending April 30, 2004. 

Executive director Al-Jeffery Ib-rahim said revenue from ancillary activities, including leasing of outdoor advertising panels on monorail columns, would help the company meet its turnover target, if it was able to secure 85,000 passengers in the first year of operations. 

KLIG is the holding company of KL Monorail System Sdn Bhd, the concessionaire and operator of the monorail service that links Titiwangsa, the Golden Triangle and KL Sentral in Brickfields.  

KLIG, which is believed to be the first light rail transit (LRT) operator to go public, amid the poor performance of existing LRT operators, plans to kick off the monorail service in August. 

“We are not just a transport company. The (ancillary activities) make us different from the other operators (of public transportation in the Klang Valley),” he said after KLIG’s listing ceremony In Kuala Lumpur yesterday.  

KLIG's media business includes the leasing of advertising panels. These panels will be on monorail columns and structures, and in the trains and stations.  

There are also plans to have plasma display screens. The train bodies, too, will be available for advertising. 

Currently, all 12 of its trains are fully sponsored by advertisers at RM300,000 per year each. 

Al-Jeffery said apart from the ancillary income from advertising and rental of retail space, KLIG expected to operate at a lower capital investment compared with the other players. 

“Since the trains are mainly manufactured locally by a KLIG subsidiary, we have been able to save on foreign exchange,'' he said. 

He also said the company was actively negotiating with parties from China and the Middle East on monorail projects. “But that depends on how we fare on the local front,'' he added. 

KLIG opened at its issue price of 51 sen with 166,000 shares changing hands. Its shares were traded to a high of 55 sen before closing at 50.5 sen, the day's low, on volume of 7,968,100 shares. 


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3
   

What do you think of this article?

It is insightful
Not in my interest

Across The Star Online