Media Prima 3Q net profit fell 33.6% to RM42.18 mil

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KUALA LUMPUR (Nov 6): Media Prima Bhd said its net profit fell 33.6% to RM42.18 million in the third quarter ended Sept 30 (3QFY14), compared to RM63.52 million in the previous year's corresponding quarter.

Quarterly revenue declined 13.6% to RM379.6 million, from RM439.28 million.

Earnings per share (EPS) dipped to 3.82 sen, from 5.82 sen previously.  

Despite posting poorer 3QFY14 results, Media Prima has declared second interim single-tier dividend of three sen a share during the quarter.

In the annoucement to Bursa Malaysia, Media Prima attributed the lower quarterly earnings to the challenging market environment and the MH370, as well as MH17 incidents.

"Advertisers are more cautious and holding back on the advertising spending during the period," it said, adding that the higher revenue in the corresponding period was underpinned by the contribution from non traditional advertisers.  

For the cumulative period (9MFY14), Media Prima's net profit declined 30% to RM105.02 million against RM150.73 million last year. Revenue also weaken by 11.8% to RM1.12 billion, from RM1.27 billion a year ago.

On prospects, Media Prima said it will remain focused on providing the best local and international content, while aiming at new market penetration and new revenue stream.

"Due to the challenging business and market conditions, we will continue to focus on the execution of key strategy on advertising growth in the remaining period of the financial year," it said, as advertising expenditure is expected to take up towards year-end, based on past trends.  

Media Prima’s share price fell two sen or 1.04% to RM1.91 today, with a market capitalization of RM2.11 billion.