According to Affin Hwang Capital, Media Prima Bhd (MPB) has managed to make a comeback in their revenue despite facing heavy loss initially due to the COVID-19 pandemic.
“Media Prima Bhd (MPB) has managed to turn around its businesses despite the challenging environment brought on by the Covid-19 pandemic”, Affin Hwang Capital says.
It cited due to partly from higher revenue and lower operating expenses, and the group manage to recognise the trends and consumer need, which they took the opportunities to shift their focus from traditional platform to digitalisation.
“This was partly attributable to the higher revenue and lower operating expenses, coupled with the group recognising the new trends and shifts in behaviour and consumer needs, and taking opportunities to re-focus from traditional to digital platforms to engage with consumers and improve their experience.
“We are cautious on the media industry given continued Covid-19 uncertainties on the market.
“Nevertheless, we are positive on MPB’s transformation efforts that have borne fruit with its leaner cost structure, thereby aiding its earnings recovery,” it said in a note today.
For the nine months, Affin Hwang said advertising remained the key earnings driver for the group, contributing 63.1% of revenue.
“The 3Q21 marked the fifth consecutive profitable quarter for MPB”, Affin Hwang says.
Affin Hwang has kept its “buy” recommendation on MPB, with a target price of 67 sen.