KUCHING: Media Chinese International Limited (MCIL) expects a more stable business environment in the first half of its financial year 2025/2026, says group’s chief executive officer Francis Tiong.
His prediction is based on expected interest cut and the potential of a more stable global trade landscape in the later part of 2025.
“The global economic environment remains uncertain, shaped by on-going geopolitical tensions, rising operational costs and erratic changes in US tariff policies.
“Advertising spending continues to fall short of pre-pandemic levels, placing pressure on overall growth,” added Tiong on at outlook comment as MCIL released weak financial results for first quarter ended June 30, 2025/2026 financial year.
In the quarter under review, MCIL, which published several Chinese newspapers in Malaysia, reported worsening group net loss of RM7.41 million as compared to losses of RM3.54 million a year ago as revenue slipped marginally to RM180.6 million from RM182.6 million. Company’s losses per share widened to 0.46sen from 0.21sen.
MCIL, which is dual-listed on Hong Kong Stock Exchange and Bursa Malaysia, said the group turnover declined by 1.1 per cent to US$42.87 million (1Q2024: US$43.34) due to weak advertising expenditure in its operating markets.
In the current quarter under review, the group’s publishing and printing segment recorded a 8.4 per cent drop in turnover to US$23.2 million (US$25.29 million) and incurred higher pre-tax loss of US$2.94 million (-US$1.89 million).
The group’s Malaysian operations recorded a 4.6 per cent year-on-year decline in turnover, falling from US$14.52 million to US$13.85 million, due to weak advertising demand and declining circulation of its print publications as well as influenced by challenging economic conditions, MCIL said.
“Despite benefitting from lower newsprint costs and depreciation expenses, the segment reported a loss before income tax of US$894,000, a reversal from a profit before income tax of US$195,000 in the same quarter last year,” it added.
In Malaysia, MCIL publishes Sin Chew Daily and several other Chinese newspapers and magazines as well as books.
In Hong Kong and Taiwan markets, the group’s turnover nosedive red by 13.3 per cent to US$8 million from US$9.24 million during the same period.
This had resulted the pre-tax loss to increase by 12.4 per cent to US$1.27 million from US$1.13 million.
“Weak market sentiments in Hong Kong impacted the group’s recruitment advertising business, JUMP, which had previously being a strong performer, as companies remained cautious in hiring.
“The group continued to build on its education business in Hong Kong, which shows positive momentum, with several education expos held in Hong Kong and Shengzhen attracting strong attendance.
This mixed outcome reflected the broader cautious market sentiments amid on-going economic uncertainties.”
On the group’s North America segment, MCIL said its turnover fell by 13.8 per cent to US$1.32 million (US$1.53 million) due mainly to a slow local economy and an on-going decline in demand for printed media.
Despite lower sales, the segment’s pre-tax loss was narrowed to US$770,000 (-US$956,000) thanks to stringent cost control measures.
MCIL said the group’s travel segment continued to report growth, as evident by a 9.1 per cent increase in its turnover to US$19.7 million (US$18.1 million).
“In addition to the continued popularity of luxury CEO tours to Mainland China and other parts of Asia, the newly introduced CEO cruise trips also received a positive response, successfully capturing a new market segment.
“Furthermore, travel demand to Australia and New Zealand rebounded, and student tours also rose significantly.
Revenue growth was also driven by increased inbound tours to the USA from Asian travellers and tours to the Canadian Rockies,” added the company.
Despite increased revenue, the travel segment posted lower pre-tax profit of US$1.03 million (US$1.16 million) or down by 10.2 per cent due to primarily to higher operating costs, including labour and rent.
Going forward, Tiong said the group will continue to monitor market trends and adjust its business strategies accordingly while at the same time to improve operational efficiency and achieve cost savings.
