KUALA LUMPUR (Oct 11): Star Media Group Bhd's group chief executive officer Alex Yeow Wai Siaw will step down after completing his employment contract at the end of February 2024.

Yeow, 58, was appointed as group CEO on March 1, 2021.

Star Media was under the limelight a few months back over proposed related party transaction deals to sell a piece of land with upcoming factories in Bukit Jelutong, Shah Alam, to Matang Bhd for RM33 million in a share and cash deal.

The deal would have seen Matang satisfying RM28.9 million of the purchase consideration via issuance of 357 million new Matang shares at 8.09 sen apiece to Star Media, and result in Star Media having a cross-holding of 13% in Matang. For the remaining purchase consideration, Star Media was to receive a cash payment of RM4.12 million from the plantation group, in which Malaysian Chinese Association (MCA) holds a 16.78% stake.

MCA is the largest shareholder in Star Media, holding a direct interest of 43.23% and an indirect interest of 2.6%.

However, at an extraordinary general meeting on May 31, Star Media's minority shareholders voted to reject the proposal.

In the financial year ended Dec 31, 2022 (FY2022), the media group posted an annual net profit of RM6.92 million, reversing two straight years of losses. Its revenue increased 16% to RM216.96 million, from RM187.11 million in FY2021.

It booked an annual net loss of RM132.36 million in FY2021, nearly seven times the net loss of RM19.72 million in FY2020, amid impairment of property, plant and equipment of RM71.6 million and reversal of compensation income of RM50.5 million incurred in FY2021.

Its latest financial results for the cumulative six months of FY2023 (1HFY2023) showed net profit fell 55.48% to RM1.93 million, from RM4.33 million a year before, hit by an increase in operating expenses.

This was despite a 3% rise in revenue for 1HFY2023 to RM110.0 million, compared to RM106.55 million in 1HFY2022, driven mainly by the launch of the Star Business Hub property development project and also an increase in the cover price of The Star.

On Wednesday, Star Media's share price closed at 43.5 sen after rising 0.5 sen or 1.16%. At 43.5 sen, the company has a market capitalisation of RM321 million.

The stock, which had been hovering below 40 sen in the past two years, shot up to a more than three-and-a-half-year high of 61.5 sen in April this year, after media group The Edge Communications Sdn Bhd and its owner Tong Kooi Ong emerged as substantial shareholders of the company.

As of Aug 30, Tong indirectly owns a 5.17% stake and directly holds a 0.2% stake in Star Media.

Year-to-date, the stock has gained 45%.

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