Communications and Multimedia out of the Six MESDAQ New Listings Sector

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Communications and Multimedia out of the Six MESDAQ New Listings Sector Communications and Multimedia Market and Financial Review 3rd Quarter 2004 Industry Development Division CONTENTS SUMMARY HIGHLIGHTS 2 MARKET PERFORMANCE 3Q 2004 Market Posted 3.7% Gain 3 C&M Sector Market Capitalisation up by 4.6% 4 C&M Company Market Contribution 5 C&M Companies – Telekom took the Limelight 6 C&M Companies Trade Details (3Q 04) 6 C&M Companies Amongst Other Heavyweights Heavyweights Telekom & Maxis 7 Malaysian Top 10 Heavyweights 7 Overseas Markets Comparatives 8 FEATURES MESDAQ Market Listing Trend 9 Malaysian Economy Remains Upbeat 10 C&M Sector Revenue – Continued Growth 12 Budget 2005 – A C&M Perspective 13 New Medium For Advertising 16 ADEX MONITOR Malaysian ADEX: Jan-Aug 04 19 Adex by Sector 20 Adex by Media 21 Television ADEX 22 Radio ADEX 24 GLOSSARY 26 C & M Bulletin 3rd Quarter 2004 1 SUMMARY HIGHLIGHTS 3Q 2004 MARKET POSTED 3.7% GAIN BUDGET 2005 – AN INDIRECT BOOST The Malaysian stock market TO C&M managed an encouraging gain of Although there were no big ticket 3.7% to close at 849.96 points on the items in Budget 2005 in respect of KL Composite Index. ICT sector development, it contained measures aimed at SMEs, financial, This was despite the continued rise manufacturing, Government and in oil prices and uncertainty over home market segments for new direction of the US economy that had areas of growth in ICT. prompted profit taking earlier in 3Q 2004. ADEX REACHED ALL TIME HIGH Malaysian Adex has exceeded the C&M SECTOR MARKET RM2 billion mark at half year of CAPITALISATION UP 4.6% 2004. The Adex for August is The C&M sector captured a market recorded at RM2.8 billion. capitalisation of RM75.6 billion in the 3Q 2004. This constituted 11.2% of TELCOS TOP ADEX CONTRIBUTOR overall Bursa Malaysia market Telecommunications companies capitalisation of RM673 billion. remained one of the top advertisers, contributing RM342.4 million as of Telekom contribution to overall August for this year alone. Top market capitalisation has increased advertisements in the significantly to 5.6% at the end 3Q telecommunications sector are 2004 from 4.3% in Dec 2003. The mobile interactive services (RM165.5 difference in ringgit terms amounted million) and mobile line services to RM10.4 billion. (RM138.9 million). TOP 10 MARKET CAPITALISATION POSITIVE TELEVISION ADEX GROWTH Telekom and Maxis shares ranked Television adex growth surpassed as second and sixth largest print adex growth at 36.1%. This respectively in terms of market compares favourably to print adex capitalisation on Bursa Malaysia. growth of only 17% for the period of January to August 2004. However, C&M SECTOR REVENUE CONTINUED print adex still holds majority of total GROWTH adex market share at 65.9%. C&M sector revenue continued to Television and radio total market record encouraging growth of 22.5% shares are at 29.1% and 3.8% as at end June 2004. Overall sector respectively. revenue notched RM11.8 billion for first half of 2004. Telekom holds TV3 TOP TELEVISION STATION largest market share (55%) while TV3 topped TV advertising market DiGi registered strongest revenue share at 43.4% or RM353.9 million. growth with 32.5% gain over the TV3 is also Malaysia’s favourite TV previous years’ half year revenue. station with 51% market share in terms of viewership. C & M Bulletin 3rd Quarter 2004 2 MARKET PERFORMANCE Third Quarter Market Posted Overall improved sentiment was also 3.7% Gain boosted by a better-than-expected 29% rise in the July exports posted Amidst concerns of higher oil prices by manufacturers shipping more affecting earnings and uncertainty computer chips and other electronic over the impact of the US goods to US, Asia and Europe. government fine tuning of their economy, the Malaysian market took In line with such market buying to profit taking in July and August optimism, the KL Composite Index, 2004. which is the main barometer of Bursa Malaysia, steadily climbed However, the local market sparked from its low of slightly above the 800 to life in late August due mainly to mark level in August to hit a high of two factors - the improved perception 865.32 on 20 September 2004. of local political climate that created an extra boost to foreign buying in For the third quarter 2004, the KL Bursa Malaysia, and the Malaysian Composite Index closed off its high, Budget 2005 that unveiled measures overall gaining 3.7% to close at to reduce the budget deficit. A lower 849.96 points. In contrast, the KL deficit is expected to improve the Emas Index, which is a Main Board country’s debt rating and reduce All-Share Index, posted a gain of borrowing costs. 2.6% to close at 202.35 at the end of September. KLCI (Jan - Sep Index 950 Last 849.96 04) High 22/03/04 908.96 Average 840.32 900 Low 17/05/04 781.05 850 Index 800 750 700 300 Average Volume 76.04 million 200 Volume 100 0 Jan Jan Feb Feb Mar Mar Apr Apr May MayJun Jun Jul Jul Aug Aug Sep Sep C & M Bulletin 3rd Quarter 2004 3 MARKET PERFORMANCE C&M Sector Market gains over this period were mainly Capitalisation up by 4.6% contributed by Telekom and Maxis share re-ratings. The public-listed C&M companies comprising the integrated service Of significant note is that Telekom providers, CASP and Pos Malaysia market capitalisation gained a captured altogether a market massive difference of RM3.3 billion capitalisation of RM75.6 billion in the or 9.6% in 3Q 04. third quarter of 2004. This is 4.6% higher than the market capitalisation of RM72.3 billion recorded at the end Communications & Multimedia Companies Market Capitalisation (RM billion) of June 2004. Dec-03 Mar-04 Jun-04 Sep-04 Telekom 27.3 34.3 34.4 The RM75.6 billion C&M sector 37.7 Maxis 18.6 22.6 21.6 market capitalisation at the end of 21.0 ASTRO 8.5 9.5 8.8 9.4 September 2004 constituted 11.2% DiGi 2.7 3.2 3.4 3.5 of overall Bursa Malaysia market Time 2.3 2.5 2.3 2.1 capitalisation of RM673 billion. PosM 0.7 0.8 1.0 1.0 Media 0.8 1.0 0.8 0.9 For the year to date, the C&M sector Prima has recorded 24% gain from RM60.9 Total 60.9 73.9 72.3 75.6 billion market capitalisation on 31 December 2003. The substantial Communications & Multimedia Companies Market Capitalisation vs KLSE Market Capitalisation 800 673 700 640 600 482 500 400 300 RM (billion) 200 100 75.6 0 48.9 60.9 Dec-02 Dec-03 Sep-04 C&M Others C & M Bulletin 3rd Quarter 2004 4 MARKET PERFORMANCE C&M Company Market difference in ringgit terms amounted Contribution to a significant RM10.4 billion. In terms of the individual C&M On the other hand, Maxis contributed companies’ contribution to Bursa 3.1% (Dec 2003 at 2.9%), ASTRO Malaysia, the four companies - contributed 1.4% (Dec 2003 at 1.3%) Telekom, Maxis, ASTRO and DiGi, while DiGi contributed 0.5% (Dec posted individually increased market 2003 at 0.4%) to Bursa Malaysia capitalisation in the third quarter market capitalisation. 2004 compared to December 2003. The rest of the C&M companies Telekom contribution to overall market capitalisation contribution Bursa Malaysia market capitalisation remained unchanged at 0.4% and has increased to 5.6% at the end 3Q 0.1% respectively except for Time 04 from 4.3%, in Dec 2003. The contribution which decreased by 1%. C&M Companies contribution to Bursa Malaysia Market Capitalisation Dec 2003 DiGi 0.4% Maxis ASTRO 2.9% 1.3% Telekom Time 4.3% 0.4% PosM 0.1% Media Prima Others 0.1% 90.5% Sep 2004 Maxis DiGi ASTRO 3.1% 0.5% 1.4% Telekom Time 5.6% 0.3% PosM 0.1% Media Prima 0.1% Others 88.8% C & M Bulletin 3rd Quarter 2004 5 MARKET PERFORMANCE C&M Companies – Telekom took the Limelight C&M Companies Performance (Jan – Sep 04) 160 03 150 - PosM 140 Media Prima DiGi 130 Telekom 120 Maxis 110 ASTRO Time % Change :Base31 Dec 100 90 Dec Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Aug Aug Sep Telekom Maxis ASTRO DiGi Time Pos Media Prima The C&M companies posted positive and Time posted a loss of 7.2% from gains ranging between 3% and 9% 90 sen to 84 sen. DiGi gained by as at third quarter 2004. Telekom 3.1% to RM4.72 per share in 3Q 04 topped the gainers list at end of while Media Prima gained 6.4% to September, both in terms of share RM1.66 per share. ASTRO, on the price and market capitalisation. other hand, gained 6.6% to RM4.88 Telekom share price gained 8.7% per share. from RM10.30 to RM11.20 per share on active trading with an average Pos Malaysia was quite actively volume traded at 3.6 million shares. traded and posted 6.7% gain from RM2.09 to RM2.23 per share. This in Maxis share declined 3.4% (30 sen), part was due to its direct investment from RM8.80 to RM8.50 per share in Transmile Group. C&M Companies Trade Details 3Q 04 Average Share Price Market Volume Company 30 Jun 30 Sep % Change High Low Capitalisation Traded (RM billion) (RM) (RM) (3 Month) (RM) (RM) ('000) Telekom 10.30 11.20 8.7 11.70 9.95 3,697 37.7 Maxis 8.80 8.50 -3.4 9.00 8.10 2,334 21.0 ASTRO 4.58 4.88 6.6 4.90 4.30 1,770 9.4 DiGi 4.58 4.72 3.1 4.98 4.60 568 3.5 Time 0.90 0.84 -7.2 0.97 0.81 413 2.1 Pos 2.09 2.23 6.7 2.28 2.06 832 1.0 Media Prima 1.56 1.66 6.4 1.79 1.44 1,768 0.9 Market Barometer KLCI 819.86 849.96 3.7 865.34 804.89 54,158 420.5 C & M Bulletin 3rd Quarter 2004 6 MARKET PERFORMANCE C&M Companies Amongst Other Heavyweights Heavyweights Telekom & Telekom and Maxis shares ranked Maxis as second and sixth largest respectively in terms of market Telekom and Maxis shares feature capitalisation on Bursa Malaysia as amongst the large market at end September 2004.
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