KUALA LUMPUR (Feb 20): Star Media Group Bhd reported a net profit of RM5.5 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), marking a more than 14-fold increase from the RM388,000 it made in the same quarter a year ago despite lower revenue, thanks to a disposal gain on investment property of RM6.48 million.

Earnings per share improved to 0.76 sen from 0.05 sen, according to the media group's bourse filing on Tuesday.

Without the disposal gain, Star Media would have made a net loss of about RM977,000 for 4QFY2023.

Quarterly revenue dipped 7% to RM55.1 million from RM58.97 million, due to lower revenue in both its print, digital and events segment, and radio broadcasting segment.

Its print, digital and events segment incurred a loss before tax (LBT) of RM2.5 million during the quarter, as compared to a profiit before tax (PBT) of RM1.2 million previously, as revenue slid 9% to RM45.6 million from RM49.9 million due to weaker market sentiment.

Its radio broadcasting business also fell into the red with an LBT of about RM100,000 from a PBT of RM1.1 million, as revenue dropped 25% to RM6.5 million from RM8.7 million on lower contribution from commercial airtime.

Only its property development and investment segment was in the black during the quarter with a PBT of RM7.7 million compared with an LBT of RM900,000 previously, due to the recognition of the disposal gain.

For the full year FY2023, Star Media's net profit climbed 8.22% to RM7.49 million from RM6.92 million in FY2022, while revenue was little changed at RM220 million compared with RM219.94 million previously.

The group's print, digital, and events segment recorded an LBT of RM1.3 million in FY2023, compared to a PBT of RM4.5 million in FY2022, primarily due to higher operating costs. The segment's revenue slid to RM184.1 million in FY2023 from RM184.7 million in FY2022.

The group's radio broadcasting segment's PBT dropped to RM100,000 from RM7.2 million in FY2022, as revenue fell 19% to RM27.2 million from RM33.6 million, mainly due to lower market spend for the radio industry.

Its property development and investment business recorded PBT of RM8.1 million, compared with an LBT of RM4.2 million previously, as revenue grew to RM12.3 million from RM3.2 million on the recognition of revenue from the sale of Star Business Hub units and higher occupancy rates of the group's properties.

Moving forward, the group expressed its commitment to exploring new revenue streams while maintaining operational and cost efficiencies, given the cautious industry outlook regarding advertising expenditure in 2024.

The group also said it remains cautiously optimistic about the ongoing positive contribution of the property development and investment segment to its revenue and profitability, while it pursues potential merger and acquisition opportunities to enhance its existing businesses.

Shares in Star Media finished half a sen or 1.24% higher at 41 sen, giving the group a market capitalisation of RM302.81 million.

Editor’s note: The Edge Communications Sdn Bhd, which publishes The Edge Malaysia, has a 5.17% interest in Star Media Group Bhd