Asia Media Group Berhad Annual Report 2014
8
Chairman’s Statement
(cont’d)
ECONOMIC REVIEW
Malaysia’s Gross Domestic Product (“GDP”)
growth demonstrates its economy is on track
to achieve high income and advanced nation
status by as soon as 2020. Real GDP was
exceptionally strong in 2014, growing by
6% (2013: 4.7%), supported by continuing
robust domestic demand, especially private
consumption. Expenditure on this component
remained strong, growing by 7.1%, underpinned
by favourable labour market conditions, Federal
income transfers and also continued habit
consumption. Meanwhile, public consumption
registering growth of 4.4%, while public
investment contracted by about 5.0%. Private
investment remained at double digit growth at
11.0%.
INDUSTRY OUTLOOK AND PROSPECTS
Looking further ahead, prospects for the Digital
Out of home (“DOOH”) transit media are
promising. The independent market research
firm Frost & Sullivan expects the DOOH transit
media industry to grow at a compound annual
growth rate (“CAGR”) of 28.7% p.a., eventually
reaching RM165.90 million in 2017.
FINANCIAL PERFORMANCE
2014 was a strong year, due to existing
customers demand and an influx of new
customers. As a result of the good performance
of the multimedia advertising services and media
communication services in all three business
segments, the Group presented another strong
financial result in 2014. The Group reported
its Revenue at RM20.89 million in FYE 2014,
which achieved a CAGR of 29.07% since FYE
2007. Whilst our revenue FYE 2014 fell short of
expectations which 40% lower as compare to
last year, we are upbeat heading into 2015. The
Group reported its EBITA of RM1.1million and
net loss of RM20.5million in FYE 2014, caused
by non-cash depreciation and amortisation
expenses approximately RM28 million. (EPS:
-1.81 sen). We employ a prudent financial
management strategy: as of 31 Dec 2014, the
Group’s debt-to-equity ratio was nil, which in
real terms is nil to RM138.50 million. On the
same date, the cash balance was RM16.26
million. Such a strong and healthy balance
sheet will enable the Group to enhance market
opportunity even further in the near future.
The Group’s net cash inflow was around
RM10.09 million from operating activities.
RM27.60 million of net cash went to investing
activities, primarily for the purchasing of
broadcasting and digital equipment for
expanding the business. There was RM17.10
million positive financing cash flow, which was
primarily from new shares being issued. As for
31 December 2014, the Group had a health
financial liquidity with a cash reserve exceeding
RM16 million.
LIVE DIGITAL BROADCASTING
The Group successfully completing the trial of
live television and radio broadcasting in Klang
Valley. Real-time broadcasting will reduce on-
going maintenance costs in the long run, thus
eliminating the need for regular manual updating
of contents, lowering future expenditure.
The Group’s Digital Terrestrial Television
Broadcasting (“DTTB”) will link up with the
LCD-TV screens installed on public transport
and receive contents over the airwaves through
real-time programming transmissions. We are
focusing on Gap Fillers deployment in Klang
Valley to further enhance our signal strength
and covering blind-spot.
BOOST FROM BROADCASTING LICENSE
AMGB is one of the few companies in Malaysia
permitted to offer broadcasting services and
facilities. A full Content Application Service
Provider (“CASP”) license allows the Group to
operate 24-hour non-subscription broadcasting,
subscription broadcasting and terrestrial radio
broadcasting services nationwide.
