KUALA LUMPUR (Feb 21): Star Media Group Bhd posted a net profit of RM388,000 or 0.05 sen per share in the fourth quarter ended Dec 31, 2022 (4QFY2022) from a net loss of RM25.65 million or 3.54 sen a year earlier, mainly due to improved performance its print and digital segments.  

This is the group’s fourth consecutive quarterly profit. The group commented that growth in economic activities and continuous upbeat consumer spending has resulted in an increase in advertising bookings as businesses are resuming operations to pre-pandemic level.  

Notably, in the previous corresponding quarter(4QFY2021), the group posted losses due to the impairment of property, plant and equipment of RM39 million.
 
Meanwhile, revenue in 4QFY2022 rose 12.61% to RM58.01 million from RM51.52 million in the previous year, according to Star Media’s filing with Bursa Malaysia.  

Print and digital segment’s loss before tax went down to RM400,000 from RM44.1 million in 4QFY2021. “Revenue [for the segment also] increased by 18% mainly driven by operational enhancement which has led to improvement in advertising bookings,” said the group.  

As for the radio broadcasting segment, profit before tax increased to RM1.1 million in 4QFY2022 from RM500,000 in the prior year, driven by higher revenue contribution of commercial airtime. Revenue grew 26% to RM8.7 million from RM6.9 million.  

Further, the event and exhibition segment’s loss before tax also decreased to RM200,000 from RM300,000, said Star Media.  

For FY2022 as a whole, Star Media registered a net profit of RM6.92 million from RM132.36 million net loss a year ago, as revenue increased 15.95% to RM216.96 million from RM187.11 million.  

Notably, in the previous year (FY2021), the group posted losses due to the impairment of property, plant and equipment of RM71.6 million and reversal of compensation income of RM50.5 million.
 
Despite the improvement in the latest earnings performance, Star Media said it expects rising recession risk due to the effects of global economic instability.  

“The group will remain financially prudent and continue to improve its operational efficiencies,” it said.  

In addition, the group said it will continue its efforts in retaining and sustaining its investments in its digital transformation initiatives and strategies with various digitally driven product such as The Star Online, mStar and the newly launched BM news portal, Majoriti and print publication, Majoriti 7, which aims to further strengthen its market share in the Malay community.  

Star Media’s share price closed down 1.5 sen or 4.62% at 31 sen on Tuesday (Feb 21), giving it a market capitalisation of RM225.49 million.