Tuesday, Jul 13, 2004
The reaffirmation of Utusan Melayu (Malaysia) Berhad’s (Utusan/the group) rating of MARC-3 on the extended Revolving Underwritten Facility (RUF) reflects Utusan’s leading position in the Malay language newspaper and magazine segments coupled with improving financials following higher circulation figures and increasing advertising revenue. The rating is, however, moderated by Utusan’s exposure to rising newsprint prices and other operating costs.
Utusan Malaysia remained the highest circulated Malay daily newspaper with 246,006 copies daily for the 12-month period ended June 2003, followed closely by NSTP’s Berita Harian, which sold 228,462 copies daily. For Sunday editions, Utusan’s Mingguan Malaysia registered the highest circulation figure of 570,824 copies as compared to NSTP’s Berita Minggu of 356,414 copies. In the magazine segment, the group continued to dominate through the offering of various fortnightly and monthly-based magazines such as Mastika, Wanita, Mangga and URTV.
For financial year ended December 2003 (FY2003), the group reported RM13.1 million pre-tax profit on the back of RM347.5 million or 3.7% growth in revenue compared to the previous fiscal year. This was mainly attributable to higher contribution from its advertising activity coupled with improved daily circulation. Operating profit margin correspondingly improved from 6.5% to 6.9%.
Utusan’s net cash flow from operations, in FY2003, was lower at RM12.5 million (FY2002; RM15.1 million) while CFO interest coverage was slightly lower at 2.5 times (FY2002: 2.6 times).
Nevertheless, the group’s debt leverage has dropped to below one time, compared to 1.5 times registered in FY2002. Debt composition is skewed towards short term with 94% (the bulk of which represented by the RUF). Going forward, the group’s gearing ratio is expected to decrease in tandem with the scheduled reduction of the RUF. Overall, the group possesses somewhat moderate financial flexibility, with demonstrated access to the capital market and sizeable amount of unencumbered assets.
Utusan Malaysia remained the highest circulated Malay daily newspaper with 246,006 copies daily for the 12-month period ended June 2003, followed closely by NSTP’s Berita Harian, which sold 228,462 copies daily. For Sunday editions, Utusan’s Mingguan Malaysia registered the highest circulation figure of 570,824 copies as compared to NSTP’s Berita Minggu of 356,414 copies. In the magazine segment, the group continued to dominate through the offering of various fortnightly and monthly-based magazines such as Mastika, Wanita, Mangga and URTV.
For financial year ended December 2003 (FY2003), the group reported RM13.1 million pre-tax profit on the back of RM347.5 million or 3.7% growth in revenue compared to the previous fiscal year. This was mainly attributable to higher contribution from its advertising activity coupled with improved daily circulation. Operating profit margin correspondingly improved from 6.5% to 6.9%.
Utusan’s net cash flow from operations, in FY2003, was lower at RM12.5 million (FY2002; RM15.1 million) while CFO interest coverage was slightly lower at 2.5 times (FY2002: 2.6 times).
Nevertheless, the group’s debt leverage has dropped to below one time, compared to 1.5 times registered in FY2002. Debt composition is skewed towards short term with 94% (the bulk of which represented by the RUF). Going forward, the group’s gearing ratio is expected to decrease in tandem with the scheduled reduction of the RUF. Overall, the group possesses somewhat moderate financial flexibility, with demonstrated access to the capital market and sizeable amount of unencumbered assets.