SMG said it would continue to explore potential merger and acquisition opportunities.
PETALING JAYA: Star Media Group Bhd
(SMG) posted a higher pre-tax profit of RM5.5mil in the fourth quarter of 2023 (4Q23) compared with RM1.7mil in the previous corresponding period.
The higher profit was due to the sale of investment property worth RM6.5mil during the quarter. The group’s total revenue in 4Q23 was RM55.1mil, a drop of 7% as compared to 4Q22.
On its outlook for 2024, SMG in a filing with Bursa Malaysia said it expects industry advertising expenditure to be fairly cautious.
“The group continues to explore new revenue avenues while maintaining operational and cost efficiencies.
“The group is cautiously optimistic that the property development and investment segment will continue to contribute positively to the group’s revenue and profitability,” it said.
In addition, SMG said it would continue to explore potential merger and acquisition opportunities, with the aim to enhance the existing businesses of the group.
Breaking down the performance of its operating divisions during the final quarter, SMG said its property development and investment arm recorded a revenue of RM4.7mil in 4Q23 compared with RM1.1mil in 4Q22.
It said the better performance was mainly attributed to the recognition of revenue from the sale of the Star Business Hub project and higher occupancy rates of investment properties.
The property development and investment segment recorded a pre-tax profit of RM7.7mil in 4Q23 compared with a pre-tax loss of RM0.9mil in 4Q22.
SMG’s print, digital and events segment recorded a 9% fall in revenue in 4Q23 to RM45.6mil compared with RM49.9mil in 4Q22 due to weaker market sentiment.
The segment recorded a pre-tax loss of RM2.5mil in 4Q23 compared with a pre-tax profit of RM1.2mil in 4Q22 due to the lower revenue.
For its radio broadcasting, the segment generated a drop in revenue by 25% to RM6.5mil in 4Q23 compared with RM8.7mil in 4Q22. The segment recorded a pre-tax loss of RM0.1mil compared with a pre-tax profit of RM1.1mil in 4Q22 due to higher operating costs incurred.
For financial year 2023 (FY23), SMG said the group recorded revenue of RM220mil in FY23, which was in line with revenue achieved in FY22.
The group recorded a pre-tax profit of RM8.3mil in FY23 compared to RM8.8mil in FY22.
For its print, digital and events business, revenue in FY23 was RM184.1mil, which was flat against the RM184.7mil achieved in FY22 despite challenging market conditions.
The segment recorded a pre-tax loss of RM1.3mil in FY23 compared with a pre-tax profit of RM4.5mil in FY22, due to higher operating costs incurred.
For its radio broadcasting arm, revenue amounted to RM27.2mil in FY23, a 19% drop compared with RM33.6mil in FY22 mainly due to lower market spend for the radio industry.
The segment recorded a pre-tax profit of RM0.1mil in FY23 compared with a pre-tax profit of RM7.2mil in FY22.
Its property development and investment segment posted a revenue of RM12.3mil in FY23 compared with RM3.2mil in FY22 mainly due to the recognition of revenue from the sale of Star Business Hub units and an increase in occupancy rates of the group’s properties.
The segment recorded a pre-tax profit of RM8.1mil in FY23 compared with a pre-tax loss of RM4.2mil in FY22.
