KUALA LUMPUR (May 17): Star Media Group Bhd's net profit plunged 68.6% to RM3.54 million in the first quarter ended March 31, 2019 (1QFY19) from RM11.3 million a year ago on the back of lower revenue from its print and radio segments.

Meanwhile, revenue fell 24.3% to RM82.56 million from RM109.03 million in the same quarter a year ago, according to Star Media Group's filing to Bursa Malaysia yesterday.

On the other hand, the group returned to profitability from losses of RM9.06 million in 4QFY18, an improvement it attributed to better cost management, it said.

It posted a net loss of RM9.06 million in 4QFY18 due to a mutual separation scheme/early retirement option (MSS/ERO) that cost RM15.8 million.

Performance of the group's print and digital, radio broadcasting, and event and exhibition segments declined on an annual basis.

The print and digital segment's profit before tax (PBT) fell 78.5% to RM3.65 million from RM16.96 million a year ago on lower revenue caused by poor market sentiments.

Meanwhile, the radio broadcasting segment recorded a loss of RM90,000 on the back of RM5.38 million in revenue. In comparison, its PBT in 1QFY18 was RM1.56 million while revenue was RM8.24 million.

Its event and exhibition segment saw PBT fall to RM1.62 million on the back of lower revenue of RM5.28 million, due to fewer events held during the quarter. In comparison, PBT a year ago was RM2.69 million while revenue stood at RM6.01 million.

The group said it expected advertising expenditure to be soft and remain challenging due to weak sentiments.

"However, we expect the print and digital segment to perform satisfactorily in 2019 as a result of better cost management following the MSS/ERO exercise," Star Media Group said.

"We also expect robust revenue growth from the digital segment as more advertisers migrate into this space. We would also be driving new revenue streams beyond print. We will continue to focus on using new technologies and analytics to improve, deepen and predict how our customers consume content with the end goal of increasing engagement and monetisation," it added.

At 11.29am today, Star Media Group shares fell 1 sen or 1.47% to 67 sen, bringing its market cap to RM494.84 million.