PETALING JAYA: The Star Media Group Bhd (SMG) saw its third quarter revenue edge up 1% compared with the previous quarter, but net profit took a 97.45% plunge due to high operating costs.
For the financial quarter ended Sept 30, 2023 (Q3 FY2023) SMG reported a revenue of RM54.93 million, up marginally from the RM54.43 million recorded in the previous corresponding quarter.
However, the company reported a net profit of only RM56,000 for the same quarter, compared with RM2.2 million in the quarter a year ago.
Nonetheless, its performance in the print, digital and events segment was “consistent” in comparison with Q3 FY2022, it said in a filing with Bursa Malaysia today.
The segment recorded a profit before tax of RM700,000 compared with RM1.3 million in the same quarter last year.
The company attributed the lower profit to an increase in the cost of newsprint, coupled with a weakening of the ringgit against the US dollar.
On the other hand, revenue for its radio broadcasting segment dropped from RM7.7 million in Q3 FY2022 to RM5.7 million in Q3 FY2023 for a 26% decline.
The segment also recorded a pre-tax loss of RM1.1 million compared to a pre-tax profit of RM1.2 million previously. SMG said the decline was due to lower revenue from commercial airtime.
Its property development and investment arm saw revenue rise to RM3.4 million from RM800,000 in the previous corresponding quarter. The improved performance was attributed to the launch of the Star Business Hub project, an industrial freehold development, which is part of an effort to diversify its business.
For this segment, there was a RM500,000 pre-tax profit compared with a pre-tax loss of RM1.2 million previously.
The media group said an expected increase in global inflation due mainly to geopolitical factors could have an impact on its future prospects.
“The group will continue with its prudent management strategy while focusing on revenue enhancement initiatives and operational efficiency improvements,” it said.
“As market conditions remain challenging which resulted in contraction of industry revenue, SMG continues to sustain its revenue and overall financial performance, while remaining financially prudent,” it added.
SMG shares ended the day at 43 sen, down 1.5 sen or 3.37% from yesterday, giving it a market capitalisation of RM313.97 million.