SMG remains steadfast amid headwinds


SMG said the media landscape faced headwinds as advertising expenditure softened amid broader economic uncertainties and geopolitical tensions.

PETALING JAYA: Star Media Group Bhd (SMG) has posted a revenue of RM39.4mil for the first quarter ended March 31, 2026 (1Q26), down 34% from the corresponding quarter a year ago.

The decline was mainly due to the completion of the Star Business Hub development project in 2Q25, SMG said in a filing with Bursa Malaysia.

It said the media landscape also faced headwinds as advertising expenditure softened amid broader economic uncertainties and geopolitical tensions.

As a result, the group posted a loss before tax of RM10.3mil in 1Q26, compared with a profit before tax of RM0.7mil in the same period a year earlier.

Segment-wise, revenue from the print, digital and events segment declined 13% to RM31mil in 1Q26, resulting in a loss before tax of RM5.6mil as cautious advertiser sentiment amid a volatile global economy weighed on performance.

The radio broadcasting segment saw revenue decline by 11% to RM7.9mil in 1Q26, resulting in a lower profit before tax of RM1mil, due to competitive pricing pressures and cautious advertising spending by clients.

Meanwhile, the property development and investment segment recorded a decline in revenue to RM2mil from RM16.5mil in 1Q25.

The decrease was primarily due to the completion of the Star Business Hub development project.

Correspondingly, the segment recorded a loss before tax of RM0.2mil in 1Q26 compared to a profit before tax of RM6.5mil in 1Q25.

On prospects, SMG said the outlook for the global economy remains clouded by persistent geopolitical tensions and evolving trade policies, which continue to weigh on business sentiment.

These factors are expected to moderate the pace of recovery and sustain cost-of-living pressures, further suppressing advertising expenditure across the media industry.

“In response, the group is prioritising the growth of its digital ecosystem, leveraging data analytics and innovative integrated media solutions to better serve clients while driving operational efficiencies.

“Supported by a robust financial position, the group has recently announced and invested in TrustCapital Australian Office Fund No 3 to broaden its income streams while continuing to explore new opportunities for revenue diversification to ensure long-term sustainable growth,” SMG said.

SMG also said the group is confident that its disciplined approach to financial management will enable it to navigate the current environment and emerge more resilient despite the challenging near term outlook.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Capital A exits PN17 after six-year overhaul
Heineken to strengthen growth fundamentals�
Majuperak exits affected listed issuer status, strengthens recovery journey
MNRB to buy balance 80% of Labuan Re for RM400mil�
Strong 1Q for EPF
Pharmaniaga bets big on insulin growth
Vizione unit bags RM66mil� housing deal
Feytech to focus on core OEM customers
LHI registers solid profit growth in 1Q26
Favelle Favco 1Q net profit drops

Others Also Read