The first thing you notice about Abdul Rahman Ahmad is that he is improbably young for a chief executive of an Asian company. This wouldn't be so unusual if he was CEO of a sprightly young start-up. But at a Government-owned media giant, it’s practically unheard of.
Rahman has helmed what is now called Media Prima, Malaysia's largest media company, since 2001 - when he was 31. But to meet him, it’s hard to imagine him ever having done anything else.
He is a touch brusque, and there is a sense that he is more comfortable with numbers than with people. But it soon becomes obvious why the Cambridge-educated accountant has earned himself a reputation for being the ‘turnaround king’ of Malaysian media.
Rahman has led the recovery of a company that was in deep trouble at the beginning of the decade. It was 2001, and he had just been appointed CEO of the debt-laden Malaysian Resources Corporation Berhad - owner of TV3, the country’s largest TV network, and New Straits Times Press, publisher of the country’s oldest newspaper.
He restructured the company, de-merging the contruction business of MRCB from its media assets. He then initiated drastic cost-cutting measures before embarking on the most aggressive acquisition spree Malaysia’s media industry had ever seen. Renamed Media Prima, its stock market value has soared since, from less than RM1 billion (US$300 million) in 2004 to around RM2 billion now, while revenues have doubled.
In the first quarter of this year, the company’s pre-tax profits shot up by 101 per cent on top of revenue growth of 41 per cent - largely thanks to Rahman's recent acquisitions. Television and radio have been his focus. The addition of Metropolitan TV, a TV station licence, led to the launch of 8TV in January 2004. Four months later, Media Prima bought Perintis Layar, and with it the licence to launch a radio station. By October, Media Prima’s FLYfm was broadcasting nationwide.
In a similarly ravenous fashion, Media Prima has acquired TV, radio and, more recently, outdoor businesses in the last four years.
Media agencies grumble that most of these businesses continue to operate in their silos, and there are few cross-media opportunities. More of a concern still is Media Prima’s monopoly status. The company now owns every private free-to-air TV station in Malaysia and controls almost half of the country's TV viewership. It also controls roughly 90 per cent of all advertising on TV and 70 per cent of all broadcast advertising.
Unsurprisingly, this does not sit comfortably with advertisers (or the electorate - Media Prima has strong ties with Malaysia’s ruling party, UMNO). But Rahman argues that Media Prima’s monopoly tag is misperceived.
"Malaysia’s media market is intensely competitive. Remember that we’re not just competing in the free-to-air TV space. As big as we are, we not as big as Star Publications [publisher of The Star] in the newspaper market. And Astro dominates the pay-TV market."
Pay-TV is an area the company may well venture into next, hints Rahman. There is also plenty of growth potential left in radio, online and even television, he says. "TV's advertising share is still small in Malaysia - it’s 33 per cent, compared to over 70 per cent in Indonesia and the Philippines."
He also has one eye overseas. In March, Media Prima set up a media equity fund with the intention of raising up to $150 million to fund acquisitions in Southeast Asia and other fast-growing markets. The move saw Media Prima strike a content deal with struggling Philippine TV network ABC5, a company Rahman intends to rejuvenate.
But he has broader ambitions. "We are yet to see a strong pan-Asean media group emerge. MediaCorp has entered Vietnam, and Astro has gone into Indonesia and India. Regulatory constraints have made it hard, but there’s lots of potential in this region."
Media Prima generates 95 per cent of its revenues from advertising. However, Rahman sees a future in monetising Media Prima’s content, over a third of which is produced in-house.
"We have invested more in local production,” he says, with a nod to 'Made in Malaysia', the controversial Government initiative that serves to protect the local production industry. “But Malaysia has an opportunity to be a regional hub for content."
Programming for Islamic audiences is one area he wants to grow, exporting to markets such as the Middle East, Indonesia, Brunei and Singapore. Although it is likely that, for now at least, Rahman will focus on safeguarding his company’s interests at home.
"Things may well take a turn for the worse. But to an extent, this is a self-fulfilling prophecy. I’m still bullish, but I am also aware that as a media company we feel the effects of the economy very keenly."
Abdul Rahman’s CV
2003 CEO, Media Prima Berhad
2001 CEO, Malaysian Resources Corporation Berhad
2000 Executive director, SSR Associates
1999 Unit head, Pengurusan Danaharta Nasional Berhad
1996 Special assistant, Trenergy Berhad/Turnaround Managers
1992 Assistant manager, Arthur Andersen, United Kingdom
Rahman has helmed what is now called Media Prima, Malaysia's largest media company, since 2001 - when he was 31. But to meet him, it’s hard to imagine him ever having done anything else.
He is a touch brusque, and there is a sense that he is more comfortable with numbers than with people. But it soon becomes obvious why the Cambridge-educated accountant has earned himself a reputation for being the ‘turnaround king’ of Malaysian media.
Rahman has led the recovery of a company that was in deep trouble at the beginning of the decade. It was 2001, and he had just been appointed CEO of the debt-laden Malaysian Resources Corporation Berhad - owner of TV3, the country’s largest TV network, and New Straits Times Press, publisher of the country’s oldest newspaper.
He restructured the company, de-merging the contruction business of MRCB from its media assets. He then initiated drastic cost-cutting measures before embarking on the most aggressive acquisition spree Malaysia’s media industry had ever seen. Renamed Media Prima, its stock market value has soared since, from less than RM1 billion (US$300 million) in 2004 to around RM2 billion now, while revenues have doubled.
In the first quarter of this year, the company’s pre-tax profits shot up by 101 per cent on top of revenue growth of 41 per cent - largely thanks to Rahman's recent acquisitions. Television and radio have been his focus. The addition of Metropolitan TV, a TV station licence, led to the launch of 8TV in January 2004. Four months later, Media Prima bought Perintis Layar, and with it the licence to launch a radio station. By October, Media Prima’s FLYfm was broadcasting nationwide.
In a similarly ravenous fashion, Media Prima has acquired TV, radio and, more recently, outdoor businesses in the last four years.
Media agencies grumble that most of these businesses continue to operate in their silos, and there are few cross-media opportunities. More of a concern still is Media Prima’s monopoly status. The company now owns every private free-to-air TV station in Malaysia and controls almost half of the country's TV viewership. It also controls roughly 90 per cent of all advertising on TV and 70 per cent of all broadcast advertising.
Unsurprisingly, this does not sit comfortably with advertisers (or the electorate - Media Prima has strong ties with Malaysia’s ruling party, UMNO). But Rahman argues that Media Prima’s monopoly tag is misperceived.
"Malaysia’s media market is intensely competitive. Remember that we’re not just competing in the free-to-air TV space. As big as we are, we not as big as Star Publications [publisher of The Star] in the newspaper market. And Astro dominates the pay-TV market."
Pay-TV is an area the company may well venture into next, hints Rahman. There is also plenty of growth potential left in radio, online and even television, he says. "TV's advertising share is still small in Malaysia - it’s 33 per cent, compared to over 70 per cent in Indonesia and the Philippines."
He also has one eye overseas. In March, Media Prima set up a media equity fund with the intention of raising up to $150 million to fund acquisitions in Southeast Asia and other fast-growing markets. The move saw Media Prima strike a content deal with struggling Philippine TV network ABC5, a company Rahman intends to rejuvenate.
But he has broader ambitions. "We are yet to see a strong pan-Asean media group emerge. MediaCorp has entered Vietnam, and Astro has gone into Indonesia and India. Regulatory constraints have made it hard, but there’s lots of potential in this region."
Media Prima generates 95 per cent of its revenues from advertising. However, Rahman sees a future in monetising Media Prima’s content, over a third of which is produced in-house.
"We have invested more in local production,” he says, with a nod to 'Made in Malaysia', the controversial Government initiative that serves to protect the local production industry. “But Malaysia has an opportunity to be a regional hub for content."
Programming for Islamic audiences is one area he wants to grow, exporting to markets such as the Middle East, Indonesia, Brunei and Singapore. Although it is likely that, for now at least, Rahman will focus on safeguarding his company’s interests at home.
"Things may well take a turn for the worse. But to an extent, this is a self-fulfilling prophecy. I’m still bullish, but I am also aware that as a media company we feel the effects of the economy very keenly."
Abdul Rahman’s CV
2003 CEO, Media Prima Berhad
2001 CEO, Malaysian Resources Corporation Berhad
2000 Executive director, SSR Associates
1999 Unit head, Pengurusan Danaharta Nasional Berhad
1996 Special assistant, Trenergy Berhad/Turnaround Managers
1992 Assistant manager, Arthur Andersen, United Kingdom
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