STAR MEDIA'S Q3 NET PROFIT RISES TO RM26.92 MLN

KUALA LUMPUR, Nov 12  -- Star Media Group's net profit for the third quarter ended Sept 30, 2020 (Q3 2020) surged to RM26.92 million from RM250,000 in the same quarter last year.

However, its revenue declined to RM48.21 million from RM79.58 million previously.

In a filing with Bursa Malaysia today, the group attributed the increase in net profit to the recognition of a RM50.54 million compensation for the late delivery of vacant possession of an investment property under construction from Jaks Island Circle Sdn Bhd.

During the quarter under review, the group said its print and digital segment recorded a pre-tax profit of RM33.67 million compared with a pre-tax loss of RM280,000 in Q3 2019. 

However, the segment’s revenue dropped to RM42.67 million from RM67.58 million in Q3 2019 due to the soft economic condition, coupled with the adverse effects of the COVID-19 pandemic.

Its radio broadcasting segment posted a loss of RM380,000 compared with a gain of RM90,000 in Q3 2019, while revenue fell to RM5.54 million from RM6.64 million previously, dragged by cautious spending by advertisers and subdued advertising market due to the COVID-19 pandemic.

Meanwhile, its event and exhibition segment recorded a pre-tax loss of RM780,000 versus a pre-tax profit of RM730,000 previously, as the pandemic and the prolonged Movement Control Orders have caused a lot of its offline events to be cancelled.

Moving forward, Star Media expects revenue growth from its digital segment, despite the soft and challenging market conditions.

It will use new technologies and analytics to improve, deepen and predict how customers consume content with the goal of increasing engagement and monetisation to drive new revenue streams beyond print.

The media group said to this end, its SMG Brand Studio provides advertisers with a One Stop Shop for solution-based, end-to-end marketing planning, encompassing strategy, data analytics, as well as creative and content execution.

It has a strong balance sheet, with a cash reserve of more than RM300 million, with no borrowings as of Sept 30, 2020. 

"This will act as a solid base for SMG to capitalise on merger and acquisition opportunities during the market consolidation, and even penetrate into new businesses that have a promising outlook," it added.

-- BERNAMA