SMG said it would remain financially prudent and continue to improve on its operational efficiencies.
PETALING JAYA: Star Media Group Bhd
(SMG) reported a 16% increase in revenue for its financial year 2022 (FY22) to RM217mil as a result of revenue-focused initiatives by the management that led to the continuous improvement in its financial performance.
“The company capitalised on the growth in economic activities and continuous upbeat consumer spending which has resulted in an increase in advertising bookings as businesses are resuming operations to pre-pandemic levels.”
“The focus on revenue initiatives have translated into growth in our financial performance. Despite the improvement, we expect rising recession risk due to the effects of global economic instability,” said SMG in a filing with Bursa Malaysia accompanying its financial results.
SMG said it would remain financially prudent and continue to improve on its operational efficiencies.
“The group will continue its efforts in retaining and sustaining its investments in its digital transformation initiatives and strategies with various digitally driven product such as The Star Online, mStar and the newly launched BM news portal, Majoriti and print publication, Majoriti 7, which aims to further strengthen our market share in the Malay community,” it said.
Pre-tax group profit amounted to RM8.8mil for FY22. For the year, its revenue from the print and digital business division rose by 15% to RM184.2mil, contributed by the print advertising, digital advertorial pillar and growth marketing.
Pre-tax profit by this segment was RM0.9mil compared with a pre-tax loss of RM151.3mil in FY21.
Its radio broadcasting arm posted a 31% increase in revenue to RM33.6mil in FY22 from RM25.7mil in FY21 on higher commercial airtime revenue. Pre-tax profit for the segment was RM7.2mil compared with a pre-tax profit of RM1.2mil in FY21.
Its event and exhibition business recorded a pre-tax loss of RM0.8mil in FY22 and FY21 respectively.
For SMG’s fourth quarter of financial year 2022 (4Q22), revenue increased by 8% to RM58mil compared with RM53.6mil in 3Q22 as a result of an increase in revenue by its print and digital segment.
SMG said its pre-tax profit dipped to RM1.7mil compared with RM1.9mil in 3Q22 due to the continued increase in operating expenses arising from higher newsprint costs due to weakening of the ringgit against the US dollar.
