Star Media returns to profit in 2QFY22 after five quarters in the red

KUALA LUMPUR (Aug 23): Star Media Group Bhd returned to profit in the second quarter ended June 30, 2022 (2QFY22), after incurring losses for five straight quarters, following the absence of impairment charges and as revenue rose.

The publishing group posted a net profit of RM1.81 million or 0.25 sen per share in 2QFY22 compared to a net loss of RM37.85 million or 5.22 sen per share in 2QFY21. The previous year's earnings were dragged by impairments on property, plant and equipment that amounted to RM32.66 million.

Quarterly revenue rose 13.86% year-on-year to RM53.22 million from RM46.74 million, according to its filing with Bursa Malaysia on Tuesday (Aug 23). No dividend was declared.

Profit before tax for the radio broadcasting segment increased to RM2.67 million from RM1.36 million, thanks to earnings contribution of commercial airtime in the Malay segment.

Loss before tax for the print and digital segment dropped to RM460,000 from RM39.15 million, mainly due to the reopening of economic activities, which led to increased demand for advertisements. Loss for the event and exhibition segment also narrowed to RM200,000 from RM320,000.

For the first half ended June 30, Star Media posted a net profit of RM4.33 million compared with a net loss of RM51.5 million a year earlier, as revenue grew 17.86% to RM105.32 million from RM89.35 million.

The resumption of economic activity has led to an improvement in consumer consumption, which has resulted in an increase in advertising bookings as companies have resumed operations at optimal levels. This strong demand has translated into growth in 2QFY22 financial performance, said Star Media.

Despite the improvement, the group expects market conditions to remain volatile in the face of unpredictable global uncertainties, which will be challenging, adding that it will continue to improve its operational efficiency.

“The group will continue its efforts in retaining and sustaining its investments in its digital transformation initiatives and strategies with various digitally driven product such as The Star Online, mStar and the newly launched BM news portal Majoriti, which aims to further strengthen our market share in the Malay community.

“The group will leverage on its existing assets to continuously look for various opportunities that generates synergistic benefits and strengthen all our existing products in the ever-changing market environment to further boost the performance of the group,” it added.

Star Media’s share price closed at 30 sen on Tuesday, down half a sen or 1.64%, after 61,400 shares changed hands. At the closing price, the group is valued at RM221.57 million.