Star Media Group profits plunged RM8.51 million from RM43.68 million

Browsing through the newspapers.

Star Media Group Bhd’s net profit in the second-quarter ended June 2017 plunged 80.52 per cent to RM8.51 million from RM43.68 million in the same period a year ago.

This was due to lower profit from print and digital segments with poor consumer and business sentiments affected the overall advertising expenditure (adex).

In a Bursa Malaysia filing, the media company said its revenue fell 21.84 per cent to RM129.38 million from RM165.54 million, mainly due to lower revenue contribution from the print and digital as well as event and exhibition segments.

Star said its print and digital revenue had declined by 22.3 per cent year-on-year during the quarter due to lower advertising revenue caused by poor market sentiments. Overall pre-tax profit for the segment fell to RM2.99 million from RM23.02 million a year ago.

The weak second-quarter performance dragged down its net profit for the first half by 74.4 per cent to RM15.16 million from RM59.17 million a year ago. Group revenue dropped 19.5 per cent to RM260.51 million from RM323.44 million a year ago.

“Newspaper adex fell by 23.4 per cent in the first half compared with the first half of 2016. As a result of the lower revenue, pre-tax profit decreased to RM11.09 million compared with RM50.18 million in the first half of 2016,” Star said.

The company’s radio broadcasting revenue declined 4.7 per cent in the first six months as a result of poor consumer and business sentiments.

The segment posted a pre-tax profit of RM1.62 million during the period compared to a pre-tax loss of RM2.25 million a year ago. This was largely due to cost savings arising from the disposal of Red FM and Capital FM stations in 2016.

Star declared a first interim dividend of six sen per share and a special dividend of 30 sen per share for the financial year 2017, payable on Oct 17. — NST