KUALA LUMPUR (May 23): Star Media Group Bhd’s net profit dropped 54.86% to RM1.14 million for the first quarter ended March 31, 2023 (1QFY2023), from RM2.52 million a year earlier, as its main business segments reported lower earnings.

Earnings per share fell to 0.16 sen from 0.35 sen in 1QFY2022, the group's bourse filing showed.

Quarterly revenue decreased slightly by 1% to RM51.99 million from RM52.67 million.

Star Media said its print, digital and events segment recorded a lower profit before tax of RM500,000, compared with RM1.5 million a year ago, due to increased newsprint costs.

“1QFY2023 revenue [for this segment] decreased slightly by 1% against 1QFY2022,” the group added.

For the radio broadcasting segment, its pre-tax profit fell to RM800,000 from RM2.2 million previously, affected by seasonality factors. Revenue dropped 11% to RM7.6 million from RM8.5 million.

Star Media's property development and investment segment managed to narrow its loss before tax to RM500,000 from RM1.1 million in 1QFY2022, mainly due to an increase in occupancy rate of properties.

On prospects, Star Media said it remains resilient despite cautious consumer spending which has impacted its financial performance in 1QFY2023. The group added that it will continue to improve its operational efficiencies.

Star Media noted that it has launched its maiden property development project, Star Business Hub, which is an industrial freehold development, as part of its diversification strategies.

“The group will continue its efforts in retaining and sustaining its investments in its digital transformation initiatives and strategies with various digitally driven products such as The Star Online, mStar, Majoriti and the BM print publication, Majoriti 7, which aims to further strengthen our market share in the Malay segment,” it added.

Star Media's share price closed down two sen or 4.65% at 41 sen on Tuesday (May 23), giving it a market capitalisation of RM299.52 million. Since the beginning of this year, the counter has risen by over 36%.

The Edge and its owner, Tong Kooi Ong, is a substantial shareholder of Star Media, after buying a 5.42% stake in the group in April.