2012 Annual Report - Media Prima Berhad
2012 Annual Report - Media Prima Berhad
2012 Annual Report - Media Prima Berhad
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REVENUE<br />
For the financial year (FY) ended 31<br />
December <strong>2012</strong>, the Group’s revenue<br />
increased by 4.9% to RM1.70 billion<br />
from RM1.62 billion in FY2011. This<br />
increase was mainly attributed to the<br />
moderate growth in advertisement<br />
expenditure (adex) growth which in turn<br />
was driven by Malaysia’s overall adex<br />
growth of 6.3% to RM11.4 billion.<br />
TV Networks<br />
Overall revenue for TV networks during<br />
the year was boosted by Non-Traditional<br />
Advertisers (NTA) spending and festive<br />
seasons, showing an increase of 3.2% to<br />
RM712.1 million. Adex in free-to air (FTA)<br />
TV stood at RM3.2 billion compared with<br />
RM3.0 billion in FY2011.<br />
Print <strong>Media</strong><br />
Continuous product improvement in<br />
Print <strong>Media</strong> has resulted in revenue<br />
growth, especially in advertising revenue<br />
where an 8.7% adex growth was<br />
registered driven by its strength in the<br />
Malay mass sector, led by the daily<br />
Harian Metro followed by Metro Ahad.<br />
Its market share has also improved to<br />
31.4% compared with 30% in FY2011.<br />
Outdoor <strong>Media</strong><br />
Outdoor <strong>Media</strong> recorded 5.8% revenue<br />
growth, with increased contribution from<br />
display rental and production revenue.<br />
The Outdoor <strong>Media</strong> Division continues to<br />
offer innovative and creative advertising<br />
solutions that attract the attention of<br />
consumers.<br />
Radio Networks<br />
Growth in revenue of 7% was driven by<br />
the strengthening in Chinese market<br />
segment and East Coast segment.<br />
Overall radio industry adex grew 5.2% to<br />
RM449.96 million in the same period this<br />
year.<br />
Corporate and Other Services<br />
Corporate and Other Services comprises<br />
of digital media and content creation.<br />
Under <strong>Media</strong> <strong>Prima</strong> Digital, the Group<br />
owns Tonton, the nation’s premiere<br />
video portal and manages the country’s<br />
leading newspapers online, New Straits<br />
Times, Harian Metro and BH. The<br />
segment commanded RM46.6 million in<br />
revenue, attributed by the increased in<br />
advertising spending by NTA as well as<br />
continuous investment in quality content<br />
and digital media.<br />
OPERATING EXPENSES<br />
For the FY<strong>2012</strong>, the Group’s operating<br />
costs increased by 5.7% primarily due to<br />
higher amortisation of programmes, films<br />
rights and album production costs,<br />
increase in newsprint and production<br />
cost, higher employee benefits costs and<br />
depreciation.<br />
Amortisation of programmes, film rights<br />
and album production costs<br />
The group amortisation on programmes<br />
and film rights has increased by 3.5% to<br />
RM185.4 million during FY<strong>2012</strong> as a<br />
result of investment in high quality<br />
contents while emphasising on local<br />
productions as well as ground events.<br />
Newsprint and production cost<br />
During the FY<strong>2012</strong>, the Print <strong>Media</strong><br />
segment has continued with its product<br />
improvement as well as increase in<br />
pagination that resulted in higher<br />
newsprint and production cost by 3.5%<br />
to RM233.2 million.<br />
Employee benefits costs<br />
In the current financial year, employee<br />
benefits costs rose by 7.0% to RM455.7<br />
million as compared to RM425.7 million<br />
in FY2011. The increase was mainly<br />
attributed to higher salaries and<br />
allowances, pursuant to the annual<br />
increment for <strong>2012</strong> and increase in staff<br />
headcount in line with business growth.<br />
The Group’s staff costs accounted for<br />
32.2% of total operating expenses.<br />
Depreciation<br />
Higher depreciation charged by 5.8% to<br />
RM98.6 million compared to RM93.2<br />
million in the preceding financial year<br />
was coherent with additions during the<br />
financial year, particularly on broadcasting<br />
and transmission equipment, outdoor<br />
advertising structure as well as office<br />
equipment, furniture and fittings.<br />
TAXATION<br />
For the reporting period 31 December<br />
<strong>2012</strong>, the Group improved its effective<br />
tax rate from 25.7% in FY2011 to 25.4%<br />
due to certain tax adjustments on<br />
temporary differences that give rise to<br />
the savings.<br />
TOTAL ASSETS<br />
As at 31 December <strong>2012</strong>, the total asset<br />
amounted to RM2,668.2 million, an<br />
increase of 8.3% from RM2,463.6 million<br />
in the previous financial year mainly<br />
backed by the increase in the Group’s<br />
deposits, cash and bank balances in<br />
addition to an increase in trade and other<br />
receivables.<br />
Deposits, cash and bank balances<br />
Deposits, cash and bank balances<br />
increased from RM450.1 million in<br />
FY2011 to RM682.4 million in FY<strong>2012</strong><br />
TELEVISION<br />
NETWORKS<br />
RADIO OUTDOOR<br />
NETWORKS<br />
CONTENT<br />
CREATION<br />
NEW MEDIA<br />
Group<br />
Financial Review<br />
due to the drawdown from Commercial<br />
Papers Medium Term Notes (CPMTN)<br />
programme of RM300.0 million that the<br />
Group undertook during the financial<br />
year.<br />
Trade and other receivables<br />
Trade and other receivables were<br />
recorded at RM435.4 million representing<br />
an increase of 14.6% compared to<br />
RM379.8 million in FY2011.<br />
TOTAL LIABILITIES<br />
As at 31 December <strong>2012</strong>, the Group’s<br />
total liabilities increased by 10.1% to<br />
RM1,101.4 million, primarily attributed by<br />
higher borrowings in respect of the<br />
CPMTN.<br />
Borrowings<br />
At the end of FY<strong>2012</strong>, the Group’s<br />
borrowings of RM682.7 million were up<br />
by 35.6% against preceding year end<br />
mainly due to the new CPMTN amounting<br />
to RM300.0 million.<br />
The new borrowing was offset by the<br />
redemption of the Group’s Bank<br />
Guaranteed Medium Term Notes<br />
(BGMTN) of RM100.0 million, leaving a<br />
net impact of RM200.0 million.<br />
TOTAL EQUITY<br />
The total equity had increased by 7.1%<br />
from RM1,463.3 million in FY2011 to<br />
RM1,566.7 million in FY<strong>2012</strong> generally<br />
contributed by FY<strong>2012</strong> profits net of<br />
dividends as well as the increase in<br />
share capital and share premium upon<br />
the exercise of Group Employee Share<br />
Option Scheme (ESOS) and warrants.<br />
Earnings Per Share (EPS) and Return On<br />
Equity (ROE)<br />
As a result of higher weighted ordinary<br />
share in issue at the end of FY<strong>2012</strong>, the<br />
basic EPS reduced from 19.68 sen per<br />
ordinary share in FY2011 to 19.45 sen<br />
per ordinary share in FY<strong>2012</strong>. Accordingly,<br />
the ROE also reduced from 14.1% in<br />
FY2011 to 13.4% in FY<strong>2012</strong>.<br />
Dividends<br />
For FY<strong>2012</strong>, the Company has paid its<br />
first and second single-tier interim<br />
dividend of 6 sen per ordinary share<br />
amounting to RM64.8 million on 28<br />
September <strong>2012</strong> and 28 December <strong>2012</strong><br />
respectively. The Board of Directors had<br />
recommended a final single-tier dividend<br />
of 7.0 sen per ordinary share in respect<br />
of the financial year ended 31 December<br />
<strong>2012</strong>. With the recommendation of the<br />
final single-tier dividend, total dividends<br />
for the current financial year are 13.0 sen<br />
per ordinary share.<br />
PRINT<br />
61<br />
annual<br />
report<br />
<strong>2012</strong><br />
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