KUALA LUMPUR (Nov 30): Utusan Melayu (Malaysia) Bhd, which publishes Utusan Malaysia, Mingguan Malaysia and Kosmo, returned to profit in the third quarter ended Sept 30, 2017 (3QFY17) after suffering six consecutive quarters of losses, mainly due to the recognition of gain on disposal of land of RM31.5 million in the current quarter under review.

It posted a net profit of RM31.45 million in 3QFY17 compared with a net loss of RM17.57 million a year ago. Earnings per share came in at 28.4 sen compared with a loss per share of 15.87 sen in 3QFY16.

Quarterly revenue grew 62.3% to RM93.44 million in 3QFY17 from RM57.59 million in 3QFY16.

For the cumulative nine months (9MFY17), the group narrowed its net loss to RM2.07 million from RM60.12 million a year ago.

Revenue rose 15.5% to RM188.78 million from RM163.4 million in 9MFY16 on recognition of the gain on disposal of the land, as well as revenue from distribution of Tutor Guru dan Epaper.

The group also recorded a reduction of 12.7% in total costs and higher other income due to a gain from disposal of a 60% equity interest in one subsidiary.

In a filing with Bursa Malaysia today, Utusan Melayu said the disposal was in relation to a joint venture (JV) agreement entered into by its wholly-owned subsidiary Juasa Holdings Sdn Bhd with Insan Tiara Sdn Bhd on Sept 9, 2011.

Under the JV agreement, Juasa had surrendered the land for the development into a 14-storey building project and in return received a certain portion of the completed project. The project was completed in the third quarter of 2017.

On current year prospects, Utusan Melayu 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 currently exploring," it said.

Meanwhile, the supply of computer tablets under an award by the Ministry of Education, which were uploaded with its digital newspapers, has seen an increase in its subscribers’ base to above 180,000, said Utusan Melayu.

"After the successful delivery of the computer tablets to all teachers in Sarawak, Kuala Lumpur, Selangor, Putrajaya, Negeri Sembilan and Perak, we expect to do the same for teachers in other states after the opening of 2018 school session," it added.

Going forward, the group will continue with its cost rationalisation strategies to mitigate the effect of declining revenue.

Utusan Melayu shares were untraded today. It last closed three sen or 8.22% higher at 40 sen last Thursday, bringing a market capitalisation of RM43.74 million.