Media Prima Bhd Faces Financial Challenges Amidst Market Evolution

In a recent financial update, Malaysia’s largest integrated media group, Media Prima Bhd, reported a significant 44.5% year-on-year drop in net profit for the third quarter of 2025. The decline, primarily attributed to higher taxes, has raised concerns about the company’s financial health amidst evolving market conditions.

Financial Overview

For the quarter ending March 31, 2025, Media Prima’s net profit fell to RM1.37 million from RM2.47 million in the same period the previous year. This downturn was largely due to an increase in taxation, which rose to RM3.91 million from RM587,000 in the previous year. The higher effective tax rate was a result of loss-making companies within the group, which reduced the overall profit before tax.

Despite the challenges, the company’s revenue remained relatively stable, with a slight decrease of 0.8% to RM211.58 million compared to RM213.22 million in the same quarter of the previous year. This stability was supported by growth in non-advertising revenue, which saw an 11% year-over-year increase, helping to offset declines in other segments such as publishing, marketing, out-of-home, and digital media.

Cumulative Performance

Looking at the broader picture, Media Prima’s net profit for the nine months ending March 31, 2025, fell by 75.2% to RM6.76 million from RM27.23 million in the same period the previous year. Cumulative revenue for the nine months slipped 2.5% to RM634.54 million compared to RM650.92 million.

Strategic Focus and Future Outlook

Despite the financial setbacks, Media Prima remains committed to its strategic roadmap. The company is focusing on enhancing content quality, premiumising inventory, and identifying new revenue streams. Group Chairman Datuk Seri Dr. Syed Hussian Aljunid emphasized the dynamic nature of the media industry and the broader economic conditions, stating that the group remains steadfast in executing its three-year strategic plan.

Encouraging Segments

Certain segments within Media Prima have shown encouraging performance, particularly in home shopping and audio under the broadcasting segment. These areas have contributed positively to the company’s revenue, highlighting potential growth opportunities amidst the challenging market conditions.

Conclusion

As Media Prima navigates through these financial challenges, the company’s ability to adapt and innovate will be crucial. With a focus on strategic initiatives and leveraging its diverse portfolio, Media Prima aims to strengthen its position in the media industry and contribute positively to Malaysia’s socio-economic development.