cover rationale - ChartNexus

At company level, TV3 recorded a pre-tax
profit of RM14.6 million during the period
under review as compared to RM7.9 million
recorded in the previous financial year. This
significant increase is attributable to growth in
operating revenue combined with an effective
cost control measures implemented during the
period under review.
During the financial year, TV3 had
implemented several key initiatives to bolster
its operational performance. The initiatives
include the repositioning of its programming
approach for all key audience segments aimed
at maximizing revenue, cost effectiveness and
increasing audience reach.
The impact of these key initiatives thus far has
been extremely encouraging. Despite the
marginal 3% increase in the overall advertising
expenditure (ADEX) in 2001, TV3 saw an
increase in its share of television ADEX
revenue from 46.5% in 2000 to 48% during the
year under review. Furthermore, the TV station
has successfully maintained its viewer ship
share at above 40% for the fourth consecutive
year. Results of the recent Malaysian
Communication and Multimedia Commission’s
survey also affirmed the station’s leadership
position as the most watched TV station in
Malaysia.
Other accolades include the production of
more local and new programmes as well as
receiving several awards from the advertising
industry particularly, the innovative World Cup
promotional activities.
NSTP Group showed a remarkable financial
turnaround during the financial year ended 31
August 2002. Profits from operations (before
the exceptional gain on disposal, interest,
associated companies and tax) improved from
a RM95.7 million loss last financial year to a
profit of RM41.5 million in the period under
review. Net profits turned around from a loss
of RM141.8 million in the previous financial
year to RM349.3 million mainly due to the
exceptional gain arising from the disposal of
NSTP’s 11.8% stake in Commerce Asset
Berhad to EPF for a total consideration of
RM910 million, which was completed on 2
April 2002.
The stronger operating performance was
driven primarily by the cost rationalisation
exercise undertaken by management and
improved product offerings to customers. The
main changes occurred with the New Straits
Times (NST) that began with a masthead and
layout redesign which took place on 1 January
2002. Six months later, the Business Times –
previously circulated independently – was
incorporated into the NST, to enhance the
NST’s appeal to premium advertisers.
Laporan Tahunan 2002 Annual Report
OPERATIONS REVIEW (CONTINUED)
77