A4. UNUSUAL ITEMS AFFECTING ASSETS, LIABILITIES, EQUITY, NET INCOME OR CASH FLOWS The Directors of the Company consider that a termination benefits charge of RM11.3 million incurred in the period ended 30 September 2020 to be one-off and material in nature and should be brought to the reader’s attention in understanding the Group’s financial statements.
Media Prima returns to black in 3Q with RM12m net profit
KUALA LUMPUR (Nov 18): Media Prima Bhd has returned to the black with a net profit of RM12.43 million for the third quarter ended Sept 30, 2020 (3QFY20) from a net loss of RM24.16 million a year ago, thanks to improved revenue and lower operating expenses.
The group told the stock exchange that its revenue for 3QFY20 rose 1.21% to RM268.77 million from RM265.55 million a year ago.
Accordingly, earnings per share stood at 1.12 sen for the period, from a loss per share of 21.18 sen.
READ MORE The group said it achieved its better profit after tax in the current quarter thanks to improved revenue and lower operating expenses of RM224.9 million against RM239.9 million in 3QFY19.
The group’s profit after tax also includes waivers on lease payments and rebates on licence fee amounting to RM9.7 million.
For the nine months ended Sept 30, 2020, the group’s net loss narrowed to RM37.22 million from RM73.4 million a year earlier. Its loss per share subsequently shrank to 3.36 sen from 6.62 sen.
Meanwhile, its revenue for the period fell 7.23% to RM743.48 million, from RM801.41 million a year earlier, due to the impact of the current challenging economic climate which has especially hurt advertising spending.
The decline in revenue was nevertheless offset by lower operating expenses incurred in the current period, it said.
Driven by the ongoing transformation exercise, the group said its earnings before interest, taxes, depreciation, and amortization improved by 75% while loss after tax reduced by 54% when compared to the comparative period.
Notwithstanding the recovery seen in 3QFY20, the group remains cautious on its performance for the remainder of the year due to prevailing uncertainties in the economy amid the pandemic.
“Nevertheless, the group remains committed [to] executing its strategies of offering integrated advertising solutions as we have seen increased demand in our digital advertising and advertiser content.
“The strong performance from our commerce business has provided us with opportunities to further improve the home shopping experience through signature programmes and enhanced e-commerce and mobile commerce platforms. The group shall continue to further improve operational efficiencies to strengthen our financial position,” it said.
Media Prima rose 1 sen or 5.88% to close at 18 sen today, valuing the group at RM199.66 million.
Already in this sinking ship long before SM come! I won’t buy this no hope company! I need wait time to sell to collect back my pants. You guy win more
Impossible la.. We got Astro and Chinese satellite to watch TV. Plus TV box. Tv3, NTV 7 those channel is getting lesser audiences. Lost few quarter and suddenly 1 quarter just earning, I cannot see where is potential. If price below 0.18 maybe still can invest.
Congrat GapUPlimitUp, u finally free your self ! My entry point too high and put too high hope on this once upon a time. Wait those ppl buy this share up for me to free!
Opppsss. Media surprise us again with ULANGAN trap....Where is everybody today? Hope not much people trapped by the QR. Even REV asia has no profit and income also up higher than Media ...
NoHopeMedia mind sharing ur investment amount in media? From your posts it sounds like a lot. I feel u! When it dropped below 0.15 i was already in tears because my paper loss is more than 25%
Media Prima’s 3Q20 chalked an improvement with core PATAMI of RM4.9m (against -RM5.6m in 2Q20). 9M20 core loss of -RM29.6m came in better than ours/consensus’ loss forecasts of -RM48.3m/-RM60.9m for FY20. This was accomplished on the back of the rise in top line on YoY and QoQ basis, coupled with the cost savings measures that have helped bolster its bottom line. We lower our core loss in FY20 to -RM25.9m. Upgrade to BUY with higher TP of RM0.26 based on FY21f BVPS (RM0.51) of P/B multiple of 0.5x (circa - 1.5SD below its 3-year mean) after our earnings adjustments.
Better-than-expected. Media Prima’s 3Q20 revenue of RM268.8m (+13.7% QoQ, +1.2% YoY), translated into a core PATAMI of RM4.9m (vs. core LATAMI of -RM5.6m in 2Q20, -RM23.7m in 3Q19). This brought 9M20 core LATAMI to -RM29.6m, better than ours/consensus’ estimates of -RM48.3m/-RM60.9m, respectively. The improvement was attributed to better top line coupled with the lower opex thanks to its cost rationalisation. 9M20 sum has been arrived after adjusting for (i) net impairment charge (RM7m); (ii) FOREX loss (RM177k); and (iii) loss on disposal of PPE (RM414k). No dividend was declared.
QoQ. Top line improved by +13.7% buoyed by the increased in adex with the opening of the economy following the RMCO. EBITDA margin improved by 13ppt on bearing fruit on the recent headcount rationalisation. In tandem with that, the group turned profitable charting a core PATAMI of RM4.9m (vs -RM5.6m in 2Q20).
YoY. Revenue inched up by +1.2% on the back of impressive showing in home shopping segment (+40%) and digital media (+31%). This more than offset the decline in broadcasting (-7%), publishing (-30%), OHH (-29%) and content creation (-53%). Subsequently, core PATAMI was recorded as compared to a loss of -RM23.7 in 3Q19.
YTD. Revenue skidded by -7.2% on the back of the declines in all segment but was partially cushioned with the rise in digital media (+14%) and home shopping (+36%). The commendable result in home shopping was thanks to the increase in viewership and shifting in consumer spending habits. Coupled with the improve EBITDA margin by 4.3ppt, losses tapered to -RM29.6m (vs -RM70.4m).
Outlook. Adex showed a slight uptick on the back of the reopening of the economy. We opine that this was due to advertisers ramping up engagement in tandem with the relaxation of MCO measures. We gather from the management that despite the reintroduction of CMCO across the most of Malaysia, adex numbers has been resilient due to the group’s initiative in ramping up their integrated advertising solutions and producing more advertising content. Furthermore, we deem their business transformation exercise has proven to bear fruit and remain hopeful that the improvement will persist while subsequently defending its bottom-line.
ESG. In line with the focus on ESG investing, we are pleased that Media Prima has been listed as the constituent company of the FTSE4Good Index Series, a benchmark and tradable indexes for ESG investors. The group have been awarded as the top 25% by ESG Ratings amongst PLCs assessed by FTSE Russell in June 2020. One notable initiative was the collaboration of WOWSHOP with the Ministry of Domestic Trade and Consumer Affairs to link with the SMEs and developed a DESAMALL on WOWSHOP’s ECMC platform to help SMEs reach out to WOWSHOP’s large customer base.
Forecast. We revise FY20/21/22 forecasts upward from -RM48.3m/-RM15.8m/10.2m to -RM25.9m/RM7.7m/RM27.1m after factoring higher revenue and lower opex.
Upgrade to BUY with higher TP of RM0.26 based on FY21f BVPS (RM0.51) tagged to a higher P/B multiple of 0.5x (roughly -1.5SD below its 3-year mean) after our earnings adjustments. Despite the challenging outlook in the media industry, we are encouraged by the group initiative in streamlining its operations and at the same time proactively improving their integrated advertising solutions.
GapUpLimitUp I hold 100k share. My entry point too high and average down because i put hope during Morgan stanley, and average again when SM come... only notice this share is worst GLC company. Even EPF sold all their share. 60-75% paper lost, same as SM.
Boat is here for those interested to ride it...Don't miss the opportunity now before it rocket. When few cents up, everyone appear and talk like gods ... But when price drop, everyone disappear...
Weird forum....
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
NoHopeMedia
401 posts
Posted by NoHopeMedia > 2020-11-12 21:02 | Report Abuse
Tomorow limit up...Those buy low can enjoy the fruit only if able to profit later....
Or else chili is waiting to be pedas