2012 Annual Report - Media Prima Berhad

REVENUE
For the financial year (FY) ended 31
December 2012, the Group’s revenue
increased by 4.9% to RM1.70 billion
from RM1.62 billion in FY2011. This
increase was mainly attributed to the
moderate growth in advertisement
expenditure (adex) growth which in turn
was driven by Malaysia’s overall adex
growth of 6.3% to RM11.4 billion.
TV Networks
Overall revenue for TV networks during
the year was boosted by Non-Traditional
Advertisers (NTA) spending and festive
seasons, showing an increase of 3.2% to
RM712.1 million. Adex in free-to air (FTA)
TV stood at RM3.2 billion compared with
RM3.0 billion in FY2011.
Print Media
Continuous product improvement in
Print Media has resulted in revenue
growth, especially in advertising revenue
where an 8.7% adex growth was
registered driven by its strength in the
Malay mass sector, led by the daily
Harian Metro followed by Metro Ahad.
Its market share has also improved to
31.4% compared with 30% in FY2011.
Outdoor Media
Outdoor Media recorded 5.8% revenue
growth, with increased contribution from
display rental and production revenue.
The Outdoor Media Division continues to
offer innovative and creative advertising
solutions that attract the attention of
consumers.
Radio Networks
Growth in revenue of 7% was driven by
the strengthening in Chinese market
segment and East Coast segment.
Overall radio industry adex grew 5.2% to
RM449.96 million in the same period this
year.
Corporate and Other Services
Corporate and Other Services comprises
of digital media and content creation.
Under Media Prima Digital, the Group
owns Tonton, the nation’s premiere
video portal and manages the country’s
leading newspapers online, New Straits
Times, Harian Metro and BH. The
segment commanded RM46.6 million in
revenue, attributed by the increased in
advertising spending by NTA as well as
continuous investment in quality content
and digital media.
OPERATING EXPENSES
For the FY2012, the Group’s operating
costs increased by 5.7% primarily due to
higher amortisation of programmes, films
rights and album production costs,
increase in newsprint and production
cost, higher employee benefits costs and
depreciation.
Amortisation of programmes, film rights
and album production costs
The group amortisation on programmes
and film rights has increased by 3.5% to
RM185.4 million during FY2012 as a
result of investment in high quality
contents while emphasising on local
productions as well as ground events.
Newsprint and production cost
During the FY2012, the Print Media
segment has continued with its product
improvement as well as increase in
pagination that resulted in higher
newsprint and production cost by 3.5%
to RM233.2 million.
Employee benefits costs
In the current financial year, employee
benefits costs rose by 7.0% to RM455.7
million as compared to RM425.7 million
in FY2011. The increase was mainly
attributed to higher salaries and
allowances, pursuant to the annual
increment for 2012 and increase in staff
headcount in line with business growth.
The Group’s staff costs accounted for
32.2% of total operating expenses.
Depreciation
Higher depreciation charged by 5.8% to
RM98.6 million compared to RM93.2
million in the preceding financial year
was coherent with additions during the
financial year, particularly on broadcasting
and transmission equipment, outdoor
advertising structure as well as office
equipment, furniture and fittings.
TAXATION
For the reporting period 31 December
2012, the Group improved its effective
tax rate from 25.7% in FY2011 to 25.4%
due to certain tax adjustments on
temporary differences that give rise to
the savings.
TOTAL ASSETS
As at 31 December 2012, the total asset
amounted to RM2,668.2 million, an
increase of 8.3% from RM2,463.6 million
in the previous financial year mainly
backed by the increase in the Group’s
deposits, cash and bank balances in
addition to an increase in trade and other
receivables.
Deposits, cash and bank balances
Deposits, cash and bank balances
increased from RM450.1 million in
FY2011 to RM682.4 million in FY2012
TELEVISION
NETWORKS
RADIO OUTDOOR
NETWORKS
CONTENT
CREATION
NEW MEDIA
Group
Financial Review
due to the drawdown from Commercial
Papers Medium Term Notes (CPMTN)
programme of RM300.0 million that the
Group undertook during the financial
year.
Trade and other receivables
Trade and other receivables were
recorded at RM435.4 million representing
an increase of 14.6% compared to
RM379.8 million in FY2011.
TOTAL LIABILITIES
As at 31 December 2012, the Group’s
total liabilities increased by 10.1% to
RM1,101.4 million, primarily attributed by
higher borrowings in respect of the
CPMTN.
Borrowings
At the end of FY2012, the Group’s
borrowings of RM682.7 million were up
by 35.6% against preceding year end
mainly due to the new CPMTN amounting
to RM300.0 million.
The new borrowing was offset by the
redemption of the Group’s Bank
Guaranteed Medium Term Notes
(BGMTN) of RM100.0 million, leaving a
net impact of RM200.0 million.
TOTAL EQUITY
The total equity had increased by 7.1%
from RM1,463.3 million in FY2011 to
RM1,566.7 million in FY2012 generally
contributed by FY2012 profits net of
dividends as well as the increase in
share capital and share premium upon
the exercise of Group Employee Share
Option Scheme (ESOS) and warrants.
Earnings Per Share (EPS) and Return On
Equity (ROE)
As a result of higher weighted ordinary
share in issue at the end of FY2012, the
basic EPS reduced from 19.68 sen per
ordinary share in FY2011 to 19.45 sen
per ordinary share in FY2012. Accordingly,
the ROE also reduced from 14.1% in
FY2011 to 13.4% in FY2012.
Dividends
For FY2012, the Company has paid its
first and second single-tier interim
dividend of 6 sen per ordinary share
amounting to RM64.8 million on 28
September 2012 and 28 December 2012
respectively. The Board of Directors had
recommended a final single-tier dividend
of 7.0 sen per ordinary share in respect
of the financial year ended 31 December
2012. With the recommendation of the
final single-tier dividend, total dividends
for the current financial year are 13.0 sen
per ordinary share.
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61
annual
report
2012
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