PETALING JAYA: Star Media Group Bhd
(SMG) posted a 28% increase in revenue to RM74.1mil for the second quarter ended June 2024 (2Q24) compared to RM58.0mil recorded in June 2023 (2Q23), attributed to the better performance of its property development and investment segment.
The group posted a pre-tax profit of RM7.6mil in 2Q24, a huge improvement from the RM1.2mil earned in 2Q23, SMG told Bursa Malaysia in a filing.
For the first half of 2024 (1H24), SMG saw its revenue increase by 16% to RM127.4mil from RM110.0mil recorded in June 2023 (1H23), with a pre-tax profit of RM7.4mil, a threefold increase from RM2.4mil (1H23).
In a breakdown of its performance during 1H24, SMG said its property development and investment segment recorded a revenue of RM30.6mil and pre-tax profit of RM12.0mil from revenue of RM4.2mil and a pre-tax loss of RM0.1mil in 1H23, attributed to higher progress billings from the Star Business Hub project.
The property development and investment business segment is expected to contribute positively to the group’s revenue and pre-tax profit for the second half of 2024.
Its print, digital and events business saw revenue decline by 6% to RM85.9 mil in 1H24 compared with RM91.8mil in 1H23, while the group recorded a pre-tax loss of RM6.6mil in 1H24 compared with a pre-tax loss of RM0.1mil in 1H23. The result was in line with the contraction in the advertising industry, partly due to the recent increase in geopolitical tension and conflicts that lead to cautious spending by clients, said SMG.
The radio broadcasting revenue declined by 9% to RM13.6mil in 1H24 compared with RM14.9mil in 1H23 while the group recorded a pre-tax profit of RM1.3mil in 1H24 compared with a pre-tax profit of RM2.0mil in 1H23. It attributed the decrease to lower revenue generated from commercial airtime, similarly due to the contraction of advertising spend by clients.
On its prospects, SMG said the industry outlook in relation to advertising expenditure would remain challenging in the second half of 2024.
“Management will continue to monitor business conditions, focus on improving its internal operational efficiencies and prudent cost management. Additionally, the group will continue to explore potential merger and acquisition opportunities to diversify its revenue streams,” SMG said.
