PETALING JAYA: Berjaya Media Bhd continues to be in the red although it has narrowed its loss for the fourth quarter ended April 30. For the quarter, its net loss narrowed to RM6.03mil from RM14mil previously on the back of a 28.4% drop in revenue to RM6.5mil.
In a filing with Bursa Malaysia, the group said that the lower losses were mainly because there was no further impairment loss on publishing rights incurred during the current quarter, as compared to a RM12mil impairment loss in the preceding period.
The drop in revenue was mainly due to lower advertising income reported by its principal operating subsidiary, Sun Media Corp Sdn Bhd. The decrease in revenue led to the higher loss from operations.
Meanwhile, for the full year, its net loss reduced to RM12.5mil from RM21.13mil in the previous year. Revenue dropped 22.19% to RM33.67mil. This was on the back of lower advertising revenue, which hence caused higher operational losses.
Berjaya Media is primarily engaged in the publishing of theSun newspaper. The key factors that affect the operating performance of the group include mainly newsprint cost, press printing cost, payroll cost, economic conditions and the demand for newspaper advertising.
In the statement, Berjaya Media said that it was operating in a difficult business environment and would continue to focus on improving its advertising revenue.
“The directors are of the view that the group’s business for the next financial year would remain challenging due to the prevailing economic conditions that would certainly impact the advertising and promotion budgets of most corporate clients and advertisers,” it said.
“In view of the group’s current financial condition, more marketing efforts are being initiated to improve the group’s financial position and preserve the shareholders’ equity funds.
“The board has been exploring other options, including diversifying into new businesses outside the media sector, to strengthen the financial position with the primary objective of regularising its Practice Note 17 condition.
“At this juncture, the group is looking at proposals and seeking for an extension of time from Bursa Malaysia to submit its regularisation plan,” it said.