ANNUALREPORT 2013
9
In a world that is becoming increasingly digital, Asia
Media’sstrategy is todeliver individualsandcompanies
media experience they will increasingly demand
irrespectiveof themedium.Ourcommitment toproviding
the leadingplatform ineachof ourmarket is strongand
will be supplemented by our live digital broadcasting
which we rolled out earlier. We have made strong
progress in this respect thisyear,withoverRM46million
invested multimedia advertising services, media and
communications infrastructure.
On behalf of the Board of Directors (“Board”), I am
pleased to present the Annual Report and Audited
ConsolidatedFinancial Statement ofAsiaMediaGroup
Berhad (“AMGB” or “Company”) and its subsidiary
companies (“Group”) for the financial year ended 31
December 2013 (“FYE 2013”).
EconomicReview
Malaysia’s Gross Domestic Product (“GDP”) growth
demonstrates its economy is on track to achieve high
income and advanced nation status by as soon as
2020. In2013, realGDPgrewby5.6%, surpassingboth
the consensus forecasts – a little over 5.0% - and the
Treasury’s2014budget forecast–4.5 to5.0%.Moreover,
in 4Q 2013, the growth was 6.4% year-on-year (YoY),
whichwas the highest level since 2Q 2010. Continuing
strongdomesticdemand,with impressiveannual growth
in both private consumption and private and public
investment outlays, drove the 2013 growth.
IndustryOutlookandProspects
Looking further ahead, prospects for the Digital Out
of home (“DOOH”) transit media are promising. The
independent market research firm Frost & Sullivan
expects the DOOH transit media industry to grow at a
compound annual growth rate (“CAGR”) of 28.7% p.a.,
eventually reachingRM165.90million in 2017.
Financial Performance
2013 was a particularly strong year, due to existing
customers demand and an influx of new customers.
As a result of the strongperformanceof themultimedia
advertisingservicesandmediacommunicationservices
in all three business segments, the Group presented
another strong financial result in 2013. The Group
reported its Revenue at RM35.23million in FYE 2013,
which achieved a CAGR of 46.93% since FYE 2007.
We employ a prudent financial management strategy:
asof 31Dec2013, theGroup’sdebt-to-equity ratiowas
nil, which in real terms is nil to RM142.54 million. On
the same date, the cash balancewasRM16.67million.
Such a strong and healthy balance sheet will enable
the Group to enhancemarket opportunity even further
in thenear future.
Prior to the repayment of RM11.63million to theDigital
TerrestrialTelevisionBroadcasting (‘DTTB’) infrastructure
suppliers for broadcast equipment and transmitters
purchased inFYE2012, theGroup’snet cash inflowwas
aroundRM9.43million fromoperatingactivities.RM46.48
million of net cashwent to investing activities, primarily
for thepurchasingofbroadcastinganddigital equipment
for expanding thebusiness.TherewasRM52.92million
positive financing cash flow, which was primarily from
newsharesbeing issued.As for31December2013, the
Grouphadahealthfinancial liquiditywithacash reserve
exceedingRM16million.
CorporateGovernance
AMGB believes in adhering to the best practices of
corporate governance to sustain business efficiency
and sustainability in the long term. Evidence for this
canbe found in the fact that theGrouphas consistently
upheld the integrity of business practices as a pivotal
part of ensuring consistent growth in its core business.
The Group’s measures towards this objective are
highlighted in the Corporate Governance Statement in
thisAnnual Report.
CorporateSocial Responsibility
TheGroupbelieves thateffectivecorporate responsibility
can deliver benefits to its business and, in turn, to its
shareholders by enhancing reputation and business
trust, staffmotivationand retention, customer loyaltyand
long-term shareholder value.
TheGroup, itsdirectorsandstaff supportedacommunity
service to Persatuan Kebajikan Kanak Kanak Terencat
Akal Malaysia throughout 2013.
Appreciation
We would like to express our warmest appreciation
to all our shareholders, business partners, suppliers,
customersand regulatoryauthorities for their continuing
support andconfidence inourGroup. Iwouldalso like to
take thisopportunity toacknowledge thecontributionsof
my fellowdirectors andemployees for their unwavering
dedicationandprofessionalism throughout2013,without
which it would not be possible to continue to deliver
growth in our shareholders’ value.
DATUKSERI SYEDALI
BINTANSRIABBASALHABSHEE
CHAIRMAN
Chairman’sStatement
(Cont’d)
