This article first appeared in The Edge Financial Daily on August 28, 2018 - September 3, 2018

KUALA LUMPUR: Umno-controlled Utusan Melayu (Malaysia) Bhd, which publishes Utusan Malaysia, Mingguan Malaysia and Kosmo, narrowed its net loss to RM2.65 million in the second quarter ended June 30, 2018 (2QFY18) from RM10.68 million a year ago on the contribution from a tablet project.

Loss per share came in lower at 2.39 sen for 2QFY18 compared with 9.64 sen for 2QFY17. Quarterly revenue rose 19% to RM63.87 million from RM53.83 million a year ago.

In a filing with Bursa Malaysia yesterday, the Practice Note 17 company attributed the higher revenue to recognition of income from Tutor Guru and e-Paper in relation to a tablet project. The group also recorded higher other income from a printing job.

The improved quarterly performance resulted in a lower net loss for the cumulative six months (1HFY18) at RM8.5 million, compared with RM33.52 million a year ago. Revenue also rose 25% to RM119.38 million in 1HFY18 from RM95.34 million in 1HFY17.

On prospects, Utusan said it remains cautious about the group’s performance in 2018 given the continuing downward trend of the print newspaper industry and increasing demand for online news.

“The board of directors is positive that the group will be able to sail through this challenging period. The group will continue to strategise its business and operations, including rationalising its cost structure to ensure sustainability,” it added.

Utusan shares closed unchanged at 16 sen yesterday, with a market capitalisation of RM17.72 million.