Berjaya Media mulls diversification into non-media sector

KUALA LUMPUR: Berjaya Media Bhd (BMedia), the publisher of theSun newspaper, continued to incur losses in the first quarter (Q1) ended July 31 and reiterated that it is exploring a diversification into new businesses outside the media sector.

In its interim financial results report to Bursa Malaysia, the newspaper publisher announced a net loss of RM1.49mil for the first quarter ended July 31, 2017, compared with a loss of RM2.12mil a year earlier.

The lower loss was due to lower impairment loss incurred on certain quoted investments, it said.

Meanwhile, the company’s revenue slid to RM10.12mil compared with RM10.86mil previously mainly due to lower advertising income reported by its principal operating subsidiary, Sun Media Corp Sdn Bhd.

BMedia fell into Practice Note 17 status in June as its shareholders’ equity on a consolidated basis of less than RM40mil in the fourth quarter of the last financial year represented 25% or less of its issued capital.

For the financial year to April 30, 2017 (FY17), its loss attributable to shareholders widened by a third to RM21.13mil.

BMedia said the group was operating in a difficult business environment and its directors expected business for the remaining period of the financial year to be more challenging due to the prevailing economic conditions that would impact most advertisers’ advertising and promotion budgets.

“In view of the group’s current financial condition, more marketing efforts are being initiated to improve the group’s financial position and to preserve the shareholders’ equity funds,” it said.

While the board had been exploring other options such as diversifying into new businesses, BMedia said no suitable or viable proposal had been shortlisted for consideration to-date.