Wednesday, May 18, 2011

Utusan Melayu 1Q net loss widens to RM7.09m as raw material prices rise 30%

KUALA LUMPUR: UTUSAN MELAYU (M) BHD []'s net loss widened to RM7.09 million from the net loss of RM6.04 million a year ago due to a 30% increase in raw materials.

It said on Wednesday, April 18 that revenue was higher by 15% at RM85.83 million compared with RM74.83 million. Loss per share was 6.4 sen compared with 5.46 sen.

Utusan Melayu said the higher revenue was mainly contributed by higher circulation of newspapers and distribution of books.

Its revenue fell also when compared with the preceding quarter ended Dec 31, 2010 which registered turnover of RM93.9 million, attributing the decline to lower contribution from advertising segment.

'Higher operating costs coupled with lower other income contributed to a loss before taxation (LBT) of RM6.9 million as compared with profit before taxation (PBT) of RM15.5 million for the preceding quarter,' it said.

On the prospects, it said intense competition for the market share of advertising expenditure (adex) was expected to continue in 2011.

'Nevertheless the expected positive growth in the gross domestic product and the overall adex for 2011 would provide an opportunity for the group to increase its advertising revenue.

'The group's compact newspaper, Kosmo! which grew by 18% in the first quarter of 2011, is expected to increase its contribution to the group's revenue and profitability in 2011,' it said.

The group's borrowings rose to RM142.27 million as at end March 2011 compared with RM118.77 million a year ago.

No comments:

Post a Comment