KUALA LUMPUR (May 23): Star Media Group Bhd's net profit fell 57.1% to RM6.65 million or 0.9 sen per share in the first quarter ended March 31, 2017 (1QFY17) from RM15.49 million or 2.1 sen per share a year ago, on lower profit from its print segment.

Quarterly revenue was 7.9% lower at RM183.1 million in 1QFY17 from RM198.73 million in 1QFY16, as contribution from the print and radio segment fell.

In a filing with Bursa Malaysia today, Star said revenue for the print and digital segment declined 19.5% due to lower advertising revenue caused by poor market sentiments and weakening ringgit.

"Although print revenue decreased by 23% as compared to 1QFY16, digital revenue showed a 42% increase in 1QFY17 against 1QFY16. Overall pre-tax profit for the print and digital segment dropped 70% to RM8.09 million from RM27.16 million in 1QFY16," it added.

Star also saw revenue for radio broadcasting fall 9.5% or RM1.04 million in the current quarter under review due to poor market sentiments.

"Advertisers have remained cautious with their spending. However, this segment recorded a pre-tax profit of RM1.07 million in 1QFY17 compared with a pre-tax loss of RM360,000 in 1QFY16, largely due to cost savings arising from the disposal of Red FM and Capital FM stations," it said.

The group's event, exhibition, interior and thematic segment, which consists of Cityneon and I Star Ideas Factory (Perfect Livin), saw a pre-tax profit of RM7.51 million in 1QFY17 compared with a pre-tax loss of RM1.76 million in 1QFY16. Revenue also increased 28.9% to RM54.13 million from RM42.02 million a year ago, mainly contributed by Cityneon's exhibition services and intellectual property rights.

As for the group's television channel, Li TV, its pre-tax loss has narrowed to RM1.31 million in 1QFY17 from RM1.98 million in 1QFY16, on the back of a 66% increase in revenue to RM3.36 million.

Going forward, Star said it will continue to focus on and strengthen its key strategies in the media industry.

"We will continue to defend the print segment whilst building on our other media platforms and also continue our prudent cost management," it added.

Star shares closed up one sen or 0.4% at RM2.48 today, with 1.1 million shares done, bringing it a market capitalisation of RM1.83 billion.