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KUALA LUMPUR: Star Media Group Bhd (SMG) posted a 14% rise in revenue to RM53.22mil in the second quarter of its 2022 financial year (2Q22) from 2Q21 as operational enhancement has led to an improvement in advertising bookings as businesses resumed operations at their optimal level.
SMG said strong demand translated into growth in its financial performance with not only revenue rising but also the company posting a pre-tax profit of RM2.14mil in 2Q22 compared with a pre-tax loss of RM37.76mil in 2Q 2021 that was primarily due to impairments of property, plant and equipment.
SMG said that despite the improvement in its financial performance, it expects market conditions to remain volatile in view of unpredictable global uncertainties and that the group would remain financially prudent and continue to improve on its operational efficiencies.
“The group will continue its efforts in retaining and sustaining its investments in its digital transformation initiatives and strategies with various digitally driven products such as The Star Online, mStar and the newly launched BM news portal, Majoriti, which aims to further strengthen our market share in the Malay community," said SMG in a filing with Bursa Malaysia.
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For 2Q22, SMG’s print and digital segment saw revenue increase by 12% against 2Q 2021 as the group was able to capitalise on the stronger economy which generated more demand for advertisements.
For its radio broadcasting segment, revenue was higher for the quarter at RM8.58mil compared with RM6.89mil in 2Q 2021, mainly driven by higher revenue in the Malay segment. Pre-tax profit rose to RM2.67mil compared with RM1.36mil in 2Q21.
Its event and exhibition segment recorded a loss of RM0.20mil in 2Q22, a marginal improvement compared with a loss of RM0.32mil in 2Q21.
For the six-month period, SMG recorded an 18% increase in revenue to RM105.32mil for the first half of 2022.
The group posted a pre-tax profit of RM5.12mil for 1H22, a significant improvement from a pre-tax loss of RM51.78mil in 1H21.
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