Media Prima dividend highest in industry

By Ooi Tee Ching
Published: 2012/02/24


Read more: Media Prima dividend highest in industry http://www.btimes.com.my/Current_News/BTIMES/articles/mp23/Article/#ixzz1nFjHmqcf

GOOD RETURN: Company posts 11pc profit growth to RM205.4mRecord payout as group profit for 2011 rises 11pc to RM205.4m

MEDIA Prima Bhd will pay out 16 sen a share dividend for 2011, the biggest amount it has given to shareholders.

"With a dividend yield of 4.6 per cent, you will find that it is better than putting money into a fixed deposit," said group managing director Datuk Amrin Awaluddin yesterday.

"This also works out to be the highest dividend payout among media companies."

Media Prima posted 11 per cent profit growth in 2011 to RM205.4 million, up from RM185.3 million the previous year. This figure excluded negative goodwill from the purchase of The New Straits Times Press Bhd (NSTP), which was recognised in 2010. 

Also present was chairman Datuk Johan Jaaffar and chief financial officer Mohamad Ariff Ibrahim.

"In September 2011, we completed the disposal of our foreign subsidiary TV3N Ghana, with proceeds equivalent to RM8.2 million.

"2011 was a year of ups and downs for the global economy and which we have endeavoured with a five per cent net revenue growth, contributed by the efforts of our colleagues across the group," Johan said.

Media Prima's pivotal television platform - TV3, 8TV, ntv7 and TV9 - maintained its position as the main driver and contributor to the group's strong performance.

The television networks have continued to capture the largest viewership with a combined 47 per cent of the audience share.

TV3 maintained its top position as the single most watched station with an audience viewing share of 28 per cent on both free-to-air and pay-television, despite the intense competition and the increase introduction of new channel offerings. 

NSTP, Media Prima's print arm, posted a five per cent growth in revenue, backed by a strong 12 per cent growth in advertisement revenue from 2010.

Harian Metro remained the lead newspaper with average circulation of 390,073 copies nationwide. 

Amrin said Media Prima's Hot FM, Fly FM and One FM continued to be preferred radio stations for listeners under the age of 35. 

Last year, Media Prima's outdoor media revenue, spearheaded by Big Tree Outdoor and Kurnia Outdoor, saw a 10 per cent growth from 2010. 

Through these platforms, Media Prima reaches out to 24 million people from all ages and walks of life in the country daily.

"Tonton, which was launched in August 2010, has more than two million registered users as at January 2012. They are able to view our TV offerings, listen to our radio stations, and read the New Straits Times, Berita Harian and Harian Metro via smart mobile devices," Amrin added.

On its outlook, Ariff said Media Prima's income from advertising revenue was dependent on the global economic outlook. 

"We are monitoring the economic situation in Europe and North America. We will continue to be prudent and adhere to risk management procedures to maintain our pole position in the industry.

"Should there be a moderation in economic growth, as an integrated media company, we are able to spread the risks across all platforms," he added.

Read more: Media Prima dividend highest in industry http://www.btimes.com.my/Current_News/BTIMES/articles/mp23/Article/#ixzz1nFj1BU14

Media Prima revises upwards offer for NSTP

Media Prima revises upwards offer for NSTP
Published: 2009/11/13

Media Prima says it proposes to increase the offer price of each NSTP share to RM2.40 from RM2 previously offered.


Media Prima Bhd (MPB) (4502) yesterday revised upwards its takeover offer for The New Straits Times Press (M) Bhd (NSTP).

MPB, which holds a 43 per cent interest in NSTP's equity, wants to buy all shares not owned by it in the newspaper company and later take it private. The takeover will be done through a share exchange.

Through CIMB Investment Bank Bhd yesterday, MPB announced its proposal to increase the offer price of each NSTP share to RM2.40 from RM2 previously offered.


Consequently, it proposed to revise the exchange ratio to six new MPB shares for every five offer shares accepted and one new MPB warrant free for every five offer shares accepted.
(6 new MPB share + 1 new MPB free warrant = 5 NSTP shares)

In its earlier offer, MPB offered an exchange ratio of one new MPB share for every one offer share and one new MPB warrant for every five offer shares.
(5 new MPB share + 1 new MPB warrant = 5 NSTP share)

MPB said its board thinks the higher exchange ratio is justified to improve attractiveness of the offer while not detrimental to interest of its existing shareholders. It said the revision was done after considering views of various stakeholders of NSTP and the prevailing market sentiment.

"The revised offer is attractive and fair as the revised exchange ratio represents a 10 per cent premium over the average market price of NSTP shares for the last month and a 33 per cent premium over the average market price in the same period based on absolute price.

"This revised offer reinforces MPB's belief of the greater benefits to be gained and synergies that can be crystallised by the enlarged group post completion of the transaction," MPB's group managing director Datuk Amrin Awaluddin said.

Separately, NSTP yesterday declared a special tax-exempt special dividend of 40 sen for every share held as at November 26 2009.

"We view positively NSTP's declaration of the special dividend as it is consistent with MPB's practice of returning excess capital to its shareholders.

"Our intention of returning the entire proceeds from the special dividend received from NSTP reiterates our commitment to continually enhance our shareholders' returns on their investment in the group," Amrin added.

The announcement will see NSTP paying out some RM86.9 million in dividends to shareholders. Its board said that the company has a substantial amount of retained earnings which can be rewarded to shareholders.

MPB said as an existing shareholder, it will be entitled to its portion of the special dividend amounting to around RM37.6 million.

It added that it intends to distribute to its own shareholders the entire amount of NSTP special dividend it will receive but said NSTP shareholders who accept its revised offer will not be entitled to the MPB special dividend.

NSTP shareholders who have accepted the original offer on November 5 2009 will however be entitled to receive the revised offer and also the NSTP special dividend.

http://www.btimes.com.my/Current_News/BTIMES/articles/mpb12-2/Article/index_html