Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 6 The positive economic trends are expected to continue in the near term, with recently tabled budgetary papers providing a positive outlook for Malaysia’s economy heading into 2018.  Financial Performance The year 2017, the Group has reported its Revenue at RM15.384 million, which shows an increase of 60.5% from previous year’s revenue. The Group employed a prudent financial management strategy as of 31 Dec 2017, the Group’s debt-to-equity ratio was near zero. The cash balance recorded at the end of financial period was RM2.10 million. The group maintains a healthy balance sheet which enable it to enhance market opportunity further in the near future. Live Digital Broadcasting The Group successfully completed the test of live television and radio broadcasting for all major bus routes 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 receiving 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. The Group is the only DOOH Transit Media operator in Malaysia to have a fully-fledged Content Application Service Provider Individual License (“CASP-i”), Network Facilities Provider Individual License (“NFP-i”), Network Service Provider Individual License (“NSP-i”) and Application Service Provider (“ASP”) Class License. Apart from its improved margins, the Group’s license to provide Free-to-Air (“FTA”) broadcasting services offers an avenue for bigger media players eyeing a piece of the electronic media market. Our DTTB infrastructure will create new territories for media and advertisers, allowing instantaneous measuring of market response. The possibility of swiftly delivering messages makes it ideal for time- and location-sensitive advertising, such as customer loyalty offers at shopping centres and event promotions. In order to leverage the strength of short messaging advertising, the timely and reliable delivery of messages is paramount. In addition, our live digital broadcasting network will enhance existing programme sponsorships as it will enable the provision of additional services such as ringtone downloads, mobile games and subscription to content aside from the generic contests and voting activities. CHIEF EXECUTIVE OFFICER’S STATEMENT (cont’d)