Media Prima Bhd is back with a positive swing in their first annual profit in 2021, after constantly losing money from 2016 to 2020, reporting on August 26 a net profit of RM12.7 million for the three months ended June 30, 2021 (2QFY21), up from a loss of RM18.0 million the previous year.
From RM474.7 million in 1HFY20 to RM547.0 million in 1HFY20, the group’s revenue increased by 15% to RM547.0 million.
Hong Leong Investment Bank Bhd said the integrated media group’s success was due to a turnaround that included two key elements: business restructuring and non-advertising revenue growth.
“Media Prima’s business will be driven by key business restructurings, such as workforce rationalisation, the merger of different advertising teams under Omnia, and the disposal of excess printing capacity in the fiscal year 2021.
“In addition, the group’s non-advertising revenue, which includes the residential shopping and content sales segments, increased.,” it said in a research note.
Meanwhile, the increase in advertising revenue in the first half of this year proved that the group’s strategy was working well and enabled it to achieve a stronger performance even under a smaller workforce.
“Media Prima’s future growth is supported by improved advertising performance, and the company’s diverse revenue base enables it to navigate a business cycle that affects all of its key segments.,” he said.
Media Prima recorded core profits for four consecutive quarters, after returning to profit in the third quarter of the financial year 2020.
