KUALA LUMPUR (Aug 14): Utusan Melayu (Malaysia) Bhd, which publishes Utusan Malaysia, Mingguan Malaysia and Kosmo, saw its net loss narrow to RM10.68 million in the second quarter ended June 30, 2017 (2QFY17) from RM16.26 million a year ago on lower operating costs.

Loss per share also fell to 9.64 sen from 14.68 sen.

However, quarterly revenue dropped 7.3% to RM53.83 million in 2QFY17 from RM58.08 million in 2QFY16, mainly due to lower advertisement revenue.

The group also recognised gain on disposal of properties of RM3.7 million in 2QFY16, it added.

For the cumulative six months (1HFY17), Utusan Melayu's net loss also narrowed to RM33.52 million from RM42.54 million a year ago.

However, revenue for 1HFY17 fell 9.9% to RM95.34 million from RM105.82 million in 1HFY16 due to a reduction in revenue from the advertisement segment.

"The overall decline in revenue of 9.9% was cushioned by lower operating costs, mainly attributed to a significant decrease in raw
materials costs," said Utusan Melayu.

Going forward, the group said it remains cautious with regard to the group's performance in 2017 given the continuing challenges faced by print-based media companies.

"While our core business remains in print media, we are actively seeking new businesses to support our core business activities. The property and information technology sectors are the new business segments that we have identified and are currently exploring," said Utusan Melayu.

"Meanwhile, the supply of computer tablets under an award by the Ministry of Education which were uploaded with our digital newspapers has seen an increase in our subscribers’ base to above 120,000. After
successful delivery of the computer tablets to all teachers in the states of Sarawak, Kuala Lumpur and Selangor, we expect to do the same for teachers in other states before the end of this year," it added.

The group noted that the development of its property in Jalan Chan Sow Lin here through a joint venture with a third party, is expected to be completed this month, which will boost its asset value.

"The group will continue with its cost rationalisation strategies to mitigate the effects of declining revenue," said Utusan Melayu.

Utusan Melayu shares closed 0.5 sen or 1.18% at 42 sen today, valuing it at RM46.51 million.