PETALING JAYA: Star Media Group Bhd
(SMG) has posted a net profit of RM57mil in the fourth quarter of its 2024 financial year largely coming from RM55mil as settlement agreement with JAKS Resources Bhd and the better performance by its radio business.
For the financial year 2025, SMG said the outlook for the media industry is expected to remain challenging with the economic disruptions caused by geopolitical tensions from war conflicts, and the trade wars started by the U.S. recently.
“This will inevitably impact economic recovery and raise cost of living pressures that will further inhibit the recovery in the industry. The group remains confident with its resilience and adaptability, its core business segments remain promising, and it will continue to enhance operational efficiency and discipline cost management,” SMG said in a filing with Bursa Malaysia on its financial results.
“The management is optimistic that the property development and investment segment will continue to contribute positively to the group’s performance in 2025. Leveraging on the group’s strong financial foundation, we will continue to pursue revenue diversification and profitability growth opportunities.”
For FY24, SMG said it posted a revenue of RM247.6mil, an increase of 13% compared to FY23, predominantly driven by the property development and investment segment with higher progress billings from the Star Business Hub project and better performance from events and radio broadcasting segments.
Revenue for its print, digital and events segment declined by 4% to RM177.5mil compared to RM184.1mil in FY23, while the segment recorded a pre-tax loss of RM7.7mil compared to a pre-tax loss of RM1.2mil in FY23.
It said the decrease in revenue and consequently higher pre-tax loss was due to the contraction in the advertising industry amidst economic uncertainties caused by geopolitical conflicts.
Its radio broadcasting for the year saw revenue rise by 11% to RM30.2mil compared to RM27.2mil in FY23, while the segment recorded a pre-tax profit of RM2.2mil compared to a pre-tax loss RM0.03mil in FY23.
“The improved result was contributed by better 2H24 performance with higher commercial airtime, sponsorship and digital revenue, leading to a better overall result for FY24,” it said.
For SMG’s property development and investment arm, it said revenue amounted to RM45.9mil and pre-tax profit substantially rose to RM17.3mil compared to revenue of RM12.3mil and pre-tax profit RM8.1mil in FY23, which was attributed to higher progress billings from the Star Business Hub project and higher property leasing income. The pre-tax profit of RM8.1mil in FY23 included a gain of RM6.5mil from the disposal of an investment property.
