Star Media turns to profit in 4Q19, declares 2 sen dividend

KUALA LUMPUR (Feb 27): Star Media Group Bhd booked a net profit of RM230,000 in the fourth quarter ended Dec 31, 2019 (4QFY19) from a net loss of RM9.1 million a year ago, as lower operating expenses more than offset the decline in revenue in the quarter.

Quarterly earnings per share stood at 0.03 sen, versus 1.23 sen in losses per share in 4QFY18.

In 4QFY18. the media group booked RM15.8 million in mutual separation scheme (MSS) expenses. Excluding the one-off expenses, the group’s pre-tax profit in 4QFY19 would have doubled year-on-year to RM4.98 million from RM2.44 million in FY18.

Quarterly revenue fell 18.25% to RM76.06 million from RM93.04 million, no thanks to drop in contribution from its print segment, as well as the event and exhibition segment.

For the full-FY19, Star Media’s net profit rose 8.63% to RM5.68 million or 0.77 sen per share from RM5.23 million or 0.71 sen per share. The group declared a final dividend of 2 sen per share, down from 3 sen per share for FY18.

Operating profit was 45.24% higher at RM15.85 million from RM10.91 million, thanks to lower operating expenses from print and radio segments.

In absence of the MSS expenses in 4QFY18 which helped to reduce FY19 operating expenses, the group’s operating profit was 40.67% lower at RM15.85 million, from RM26.71 million.

Full-year revenue fell 19.54% to RM315.93 million, from RM392.68 million due to slow down in ad spending in both print and radio segment.

Similarly the event and exhibition segment saw lower revenue on fewer events held.

On the other hand, Star Media pointed out that its digital segment strategy is gaining traction based on year-on-year comparison as evidenced by the increase in digital revenue of 18%.

“The group will 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 to drive new revenue streams beyond print,” it said.

Shares of the media group closed unchanged at 38 sen on Thursday, giving it a market capitalisation of RM276.96 million.