The challenging operating environment is expected to dampen prospects for media companies further despite plans for more cost-saving initiatives.
However, according to AmInvestment Bank Research, cheap valuations of the companies make them viable targets for merger and acquisition and privatisation activities. Besides that, media players have shared that engagements rose during the MCO where Star Media reported increased traffic across its digital platforms, while Media Prima also reported higher engagements across its TV segment, digital segment through its news sites and increase in radio digital listeners and commerce segment.
It highlighted that with a challenging operating environment ahead, media companies need to improve operational efficiencies with more prudent cost-saving measures put in place to cushion the impact of lower revenues.