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2012 Annual Report - Media Prima Berhad

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3 SEGMENT INFORMATION<br />

RADIO OUTDOOR<br />

NETWORKS<br />

Management has determined the operating segments based on the reports reviewed by the senior management and<br />

the Board of Directors (chief operating decision-maker) that are used to make strategic decisions.<br />

The chief operating decision-maker considers the business primarily from a product perspective as the activities of<br />

the Group is predominantly domestic based.<br />

The reportable operating segments derive their revenue primarily from commercial television and radio broadcasting,<br />

media advertising, sale of program rights, provision of outdoor advertising space and related production works and<br />

publishing and sale of newspapers.<br />

Other services include on-line media and advertisement, talent management and music recording. The results of<br />

these operations are included in the ‘corporate and others’ column.<br />

The chief operating decision-maker assesses the performance of the operating segments, before its respective tax<br />

charged or tax credits, based on a measure of Earnings Before Interest, Taxation, Depreciation and Amortisation<br />

(“EBITDA”). This measurement basis excludes the effects of non-recurring expenditure from the operating segments<br />

such as writeback or provision for impairment of assets, and when items are a result of isolated, non-recurring<br />

events. The measure also excludes the effects of equity-settled share-based payments and unrealised gains/losses<br />

on financial instruments and excludes depreciation and amortisation of property, plant and equipment given that<br />

these are sunk cost in nature. Since the chief operating decision-maker reviews EBITDA, the share of associates’<br />

profits and the results of discontinued operations are not included in the measure of EBITDA.<br />

The chief operating decision-maker assesses the assets and liabilities of the operations on a Group basis whereby<br />

the TV network, Radio Network, Outdoor <strong>Media</strong> and Print <strong>Media</strong> makes up individual segments. Within each<br />

segment, the nature of products and services offered are similar i.e. either in television or radio broadcasting for the<br />

free-to-air (FTA), market outdoor print or media print works. Within each segment, a significant portion of the assets<br />

and operations are based on shared resources basis i.e. centralised Group treasury, procurement, corporate finance,<br />

engineering, information system and other support services. Consequently, no segmental analysis is done.<br />

TELEVISION<br />

NETWORKS<br />

PRINT<br />

CONTENT<br />

CREATION<br />

NEW MEDIA<br />

177<br />

annual<br />

report<br />

<strong>2012</strong><br />

From Our Perspective Who We Are Our Strategy & Achievements Our Performance Our Responsibility Our Leadership Corporate Governance The Financials Additional Information

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