PETALING JAYA: Star Media Group Bhd (SMG) posted a small rise in revenue for the third quarter of its 2023 financial year (3Q23) as it continues to sustain its revenue and overall financial performance, while remaining financially prudent.
The group said in a filing with Bursa Malaysia on its 3Q23 financial results that market conditions continue to be challenging, resulting in the contraction in industry revenue.
It said the group would continue with its prudent management strategy while focusing on revenue enhancement initiatives and operational efficiency improvements.
“The group continues to increase its range of products such as the weekly business print publication, Star Biz7, and the recent introduction of its new print publication, Suria 7,” it said.
In announcing its financial results, the group said total revenue in 3Q23 was RM54.9mil, a marginal increase of 1% compared with 3Q22. Pre-tax profit for the latest quarter was RM0.4mil compared with RM1.9mil in 3Q22.
Revenue for its print, digital and events segment for 3Q23 was consistent with 3Q22. This segment recorded a pre-tax profit of RM0.7mil in 3Q23 compared with a pre-tax profit of RM1.3mil in 3Q22, mainly due to the increase in newsprint costs coupled with the weakening ringgit against the US dollar.
Its radio broadcasting arm generated a lower revenue of 26% amounting to RM5.7mil in 3Q23 compared with RM7.7mil in 3Q22. This segment recorded a pre-tax loss of RM1.1mil compared with a pre-tax profit of RM1.2mil in 3Q22, which was attributed to lower revenue contribution from commercial airtime.
SMG’s property development and investment arm generated a revenue of RM3.4mil in 3Q23 compared with RM0.8mil in 3Q22. This is mainly attributed to the launch of the Star Business Hub project. The property development and investment segment recorded a pre-tax profit of RM0.5mil in 3Q23 compared with a pre-tax loss of RM1.2mil in 3Q 2022.
For the nine months to the end of September 2023 (9M23), SMG said revenue amounted to RM164.9mil, an increase of 3% as compared to 9M22.
“The increase was mainly driven by the launch of the Star Business Hub property development project and the increase in cover price of The Star. The group recorded pre-tax profit of RM2.8mil in 9M23 compared with a pre-tax profit of RM7.1mil in 9M22,” it said.