PETALING JAYA: Media Prima Bhd posted a big loss for its fourth quarter because of write-offs and exceptional items with its net loss for the quarter reaching RM378.2mil from a profit of RM5mil in the previous corresponding quarter.
Revenue dropped to RM306.2mil from RM318.6mil for the quarter. For the full-year, Media Prima posted a loss of RM650.6mil, or 58.66 sen a share, from a loss of RM59.2mil in 2016.
Media Prima said exceptional items such as the provision for termination benefits of manpower along with impairments involving its plant and property along with assets relating to publishing rights amounted to RM302.7mil during the fourth quarter and RM497.4mil for the year.
“Group revenue for 4QFY17 increased by 6% against the immediate preceding quarter (3QFY17) and incurred loss after tax of RM384.7mil for 4QFY17 mainly due to declining trend of traditional advertising revenue and exceptional items amounting to RM302.7mil.
“If the exceptional items is excluded, the group posted a loss after tax of RM82mil against RM52.9mil in 3QFY17,” it said in a filing with Bursa Malaysia.
Group chairman Tan Sri Ismee Ismail, in a statement, said: “We are pleased with the encouraging outcome of our transformation efforts and we exceeded many of our FY2017 targets ahead of schedule. We will remain focus on honing our competitive advantage in the digital media landscape while keeping a close watch on our traditional media segments. Moving forward, we will continue to make strategic and prudent investments to enhance long-term shareholder value.”
Group managing director Datuk Kamal Khalid said: “Our achievements to date underscore the progress of our transformation plan and fuels our confidence in Media Prima’s future. Last year, we continued to dominate the digital space with our award-winning content. We believe the group has established much-needed foundations to grow further.”
In explaining its results, Media Prima said revenue for the financial year ended Dec 31, 2017 declined by 7% against the previous financial year and that was attributed to lower advertising and newspaper sales as the shift to digital media significantly affected the group’s traditional media business.
“While the group has ventured into new digital and consumer-based business initiatives to complement its traditional media segments, these initiatives are still undergoing a gestation period,” it said.
The company added that the group recorded 2017 loss after tax of RM669.7mil against a loss of RM69.8mil in the corresponding year mainly attributed to the exceptional items amounting to RM497.4mil. If the exceptional items were excluded, Media Prima posted a lower loss after tax of RM172.3mil.
In reviewing its performance for 2017, Media Prima said its television networks saw a 14% decline in revenue with the TV business posting a loss of RM112.9mil against a profit of RM22.2mil in 2016.
Its print media saw revenue fall by 22% but its outdoor business experienced a 6% rise in revenue. Its radio stations saw a 3% fall in revenue from 2016.