Star Media Group Bhd results have improved. (Hafidz Mahpar took photo for Star Online.)
PETALING JAYA: Star Media Group Bhd
bounced back to register a pre-tax profit of RM13.61mil on revenue of RM130.89mil from its core operations in the third quarter ended Sept 30, 2017 (Q3’17).
This excludes the net gain from the disposal of Cityneon Holdings Ltd, which amounted to RM206.86mil.
The profit was a significant jump from the RM0.57mil posted in the preceding quarter.
Adding in the sale of Cityneon, the media group’s pre-tax profit came in higher at RM220.47mil in Q3’17.
The media group said that the improved profitability in the latest quarter was mainly due to higher revenue contributions from the print and radio segments.
Star Media Group, however, remains cautious as poor consumer and business sentiment has affected advertising spending.
Notwithstanding this, it said “the media-related segments of the group will continue to enhance their respective platforms to extend their reach and market share.”
The group said it would continue to provide more bundled products and creative buys to advertisers, as well as organising client-driven events. It is also expanding aggressively into the digital business.
The media group recently embarked on its next digital transformation plan with the launch of dimsum.my - its very own video-on-demand service.
The group said it was actively searching for new investment opportunities, especially in the digital sector to further complement and enhance its existing assets.
It said it was also cognisant of investment opportunities that might arise in other industries and would also consider investments in non-core businesses with the potential to enhance the performance of the group.
“We will continue to defend the print segment while building on our other media platforms and continue to step up our cost-cutting measures, including reduction in headcount,” it said.
As at end-September, the company had cash and cash equivalents of RM698.05mil following the sale of Singapore-listed subsidiary Cityneon that was completed in July.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
