Broadcasting segment elevates Star Media to profitability in 1QFY22
KUALA LUMPUR (May 24): After five consecutive loss-making quarters, Star Media Group Bhd posted a net profit of RM2.52 million in the first quarter ended March 31, 2022 (1QFY22) compared to a net loss of RM14.1 million RM in 1QFY21, thanks to its broadcasting segment.
The company posted earnings per share of 0.35 sen against 1.95 sen per loss a year earlier. Revenue rose 22.28% to RM52.1 million from RM42.61 million, according to its stock market filing.
According to Star Media, its broadcasting segment generated a pre-tax profit of RM2.2m – compared to a loss of RM720,000 in 1QFY21, as revenue fell from RM6.31m to 8.5m from RM.
Its print and digital segment also saw an improvement, with a pre-tax profit of RM650,000 – compared to a pre-tax loss of RM13.2 million previously, while revenue increased by 23.3%, mainly due to the reopening of economic activities, which led to an increase in advertising bookings.
Its event and exposure segment recorded a loss of RM200,000 in 1QFY22, compared to a loss of RM480,000 in the corresponding quarter. “With better cost management and capitalizing on economies of scale, the group managed to achieve a better performance for this segment,” Star Media said.
Despite improving consumer confidence and business activity, the group expects market conditions to remain volatile, given mounting inflation pressure, the protracted Ukraine crisis and disruptions of the supply chain.
“The group will continue its efforts to retain and sustain its investment in its digital transformation initiatives and strategies with the various digital-focused products such as The star onlinemStar and the new BM news portal, Majoritywhich aims to further strengthen our market share in the Malaysian community.
“The group will leverage its existing assets to continuously seek out various opportunities that generate synergistic benefits and strengthen all of our existing products in an ever-changing market environment to further drive the group’s performance,” the company said on its prospects.
Shares of Star Media were down 1.59% or half a sen to 31 sen at the close on Tuesday (May 24), with a market capitalization of RM228.95 million.