cover rationale - ChartNexus

The product changes have had an immediate
positive impact on readership and circulation.
The New Straits Times and Sunday Times
readership has increased by 20% during the
year under review. Berita Harian has
maintained its position as the leading Malay
daily in terms of readership, whilst the key
success story of the financial year lies in Harian
Metro which continued to enjoy phenomenal
growth with circulation doubling in 18 months.
The NST’s online media sites have also
enjoyed increased readership with 14 million
page impressions per month, a 16% increase
from the previous financial year. News archives
sales form the bulk of the revenue stream for
NSTP e-Media, with a 14% increase in direct
subscription over the previous financial year. A
start has been made to include pictures
archives in the service.
It is heartening to note that the increased
circulation was achieved in softening market
conditions. This offset the reduction in
advertising revenue which declined by 2%
during the period under review due to the
weak advertising market caused by the
September 11, 2001.
The NSTP Group’s financial performance
benefited from lower newsprint costs
throughout most of the financial year under
review. Newsprint prices dropped to a low of
US$410 per metric tonne (C&F) before
stabilising in the third quarter of fiscal year
2002. Coupled with stringent cost
management, where corporate administrative
expenses declined by more than 30%, this
enabled the company to achieve the financial
turnaround.
In non-publishing activities, the Group’s drive
to consolidate its core businesses saw the
disposal of the mailroom equipment company,
Idab Wamac International AB, and the
healthcare management company, Prosakti Sdn
Bhd.
Another subsidiary, AMI Insurans Berhad (AMI),
achieved remarkable growth in market share,
climbing to 7th position among insurance
players in the first quarter of fiscal year 2002,
from 16th place last year. AMI recorded a pretax
profit of RM8.132 million on the back of
net premium of RM84.049 million. This success
was led mainly by AMI’s focus on increasing
the retail portion of the business.
In outdoor advertising, Clear Channel Malaysia
Sdn Bhd (CCM), formerly known as NST
Outdoor Sdn Bhd (NSTO), which is a joint
venture with Clear Channel International, won
the tender for an exclusive 10-year advertising
contract with Express Rail Link Sdn Bhd. The
contract marks another milestone for CCM to
facilitate global advertising opportunities for
clients interested in that type of marketing
exposure.
Laporan Tahunan 2002 Annual Report
OPERATIONS REVIEW (CONTINUED)
79