PETALING JAYA: Star Media Group Bhd (SMG) posted a pre-tax profit of RM14.64mil for its financial year ended Dec 31,2019 from RM8.94mil in the previous year mainly due to lower operating expenses from its print and radio segment.
SMG said its digital segment strategy is gaining traction based on year-on-year comparison as digital revenue rose by 18% last financial year.
The company declared an interim dividend of 2 sen a share for 2019.
For 2019, SMG reported a net profit of RM5.72mil from RM5.46mil the year earlier.
On the performance of its business units, SMG said print advertising revenue declined as a result of slow-down in ad spending and its radio business posted a revenue of RM24.82mil from RM29.51mil in FY 2018 as a result of cautious spending by advertisers.
Revenue for its event and exhibition segment was RM13.80mil from RM17.22mil mainly due to fewer events held by Perfect Livin’ in FY 2019 vs FY 2018.
On its outlook, SMG expects revenue growth from its digital segment going forward despite soft and challenging market conditions.
“The group will focus on using new technologies and analytics to improve, deepen and predict how our customers consume content with the end goal of increasing engagement and monetisation to drive new revenue streams beyond Print.
“dimsum entertainment continues to serve the best Asian content with simulcast and exclusive premiers from Asian content partners. It is currently available in Malaysia, Singapore and Brunei.
SMG said it will explore ways to diversify and enhance dimsum entertainment’s revenue stream. “Our radio segment is expected to perform satisfactorily despite the slowing economy. We will focus on Chinese and Malay audiences and develop in-depth knowledge of our audiences, to enhance our product’s performance.
“In the events and exhibition business segment, the group will continue its efforts to strengthen its market position, ” it said.
SMG said a subdued economic environment which may affect the group’s performance.
“Global economies are currently facing strong headwinds with uncertain economic and political conditions abroad and locally. This was also further compounded by the recent Covid-19 virus outbreak that is now showing strong signs of negative economic repercussions in many countries, ” it said.