"The property development and investment business segment will continue to contribute positively to the group’s performance," SMG said.
PETALING JAYA: Star Media Group Bhd
(SMG) posted a pre-tax profit of RM3.1mil for the third quarter of its 2024 financial year (3Q24) on better performance by its radio broadcasting arm and property development and investment segment.
Revenue for the quarter rose by 9% to RM59.6mil from RM54.9mil in the previous corresponding quarter.
In a statement to Bursa Malaysia, SMG said revenue from its broadcasting arm improved by 34% to RM7.7mil in 3Q24 compared with RM5.7mil in 3Q23 while the segment recorded a pre-tax profit of RM0.9mil in 3Q24 compared with a pre-tax loss of RM1.1mil in 3Q23.
“The increase was attributed to higher revenue generated from commercial airtime, sponsorship and digital revenue,” SMG said in a filing with Bursa Malaysia.
For its property development and investment division, SMG recorded a revenue of RM8.9mil and pre-tax profit of RM2.8mil in 3Q24, an improvement compared with a revenue of RM3.4mil and pre-tax profit of RM0.6mil in 3Q23.
The better performance was contributed by higher progress billings from the Star Business Hub project and higher property leasing income.
Its print, digital and events division saw revenue drop by 4.5% to RM44.6mil in 3Q24 compared with RM46.7mil in 3Q23 while the group recorded a pre-tax loss of RM0.9mil in 3Q24 compared with a pre-tax profit of RM0.6mil in 3Q23.
SMG said the drop in revenue was due to lower advertising revenue, in line with softer advertising spend faced by the industry.
For the nine-month period of its 2024 financial year, SMG recorded revenue of RM187.1mil, an increase of 13% compared with the same period in 2023.
The higher revenue was predominantly driven by the property development and investment segment with higher progress billings from the Star Business Hub project and better performance from the radio segment.
On its prospects, SMG said despite Malaysia’s improving economic outlook, ongoing geopolitical tensions continue to impact the recovery in certain consumer sectors that has resulted in a decline in the advertising industry.
“The advertising industry will remain challenging in 4Q24.
“The group will continue to monitor business conditions, ensure operational efficiency and prudent cost management.
“Notwithstanding the above, the property development and investment business segment will continue to contribute positively to the group’s performance.
“The management is exploring investment opportunities to diversify the group’s business incomes,” SMG said.
