SMG posts 3% rise in revenue for 1Q24

PETALING JAYA: Star Media Group Bhd (SMG) is optimistic its property development and investment segment would compensate for the challenging outlook in advertising expenditure.

Revenue for 1Q24 rose 3% to RM53.3mil from 1Q23 but higher operating costs saw the group post a small pre-tax loss of RM0.2mil compared with a pre-tax profit of RM1.1mil in 1Q23.

“The group expects industry outlook in relation to advertising expenditure to continue to be challenging. The group is cautiously optimistic that the property development and investment segment will continue to contribute positively to the group’s financial performance.

“In addition, the group is continuing to explore potential merger and acquisition opportunities, to diversify the income streams of the group,” said SMG in a filing with Bursa Malaysia.

In a breakdown of the performance of its operating units, SMG said its print, digital and events segment recorded a decline of 1% in revenue in 1Q24 to RM42.8mil compared with RM43.4mil in 1Q23 due to weaker market sentiment.

The segment recorded a pre-tax loss of RM2.5mil in 1Q24 compared with a pre-tax profit of RM0.5mil in 1Q23 due to the lower revenue achieved and higher operating costs incurred.

Its radio broadcasting arm generated lower revenue of 4% to RM7.3mil in 1Q24 compared with RM7.6mil in 1Q23. The drop was attributed to lower revenue contribution from commercial airtime. The unit recorded a pre-tax profit of RM0.6mil compared with RM0.8mil in 1Q23.

SMG’s property development and investment segment generated revenue of RM4.9mil in 1Q24 compared with RM1.3mil in 1Q23.

“This is mainly attributed to the recognition of revenue from the sale of the Star Business Hub project and higher occupancy rates of investment properties,” the company said.

The property development and investment segment recorded a pre-tax profit of RM1.3mil in 1Q24 compared with a pre-tax loss of RM0.5mil in 1Q23, mainly due to the revenue from the Star Business Hub project.