KUALA LUMPUR (Aug 22): Star Media Group Bhd’s net profit more than halved to RM791,000 or 0.11 sen per share in the second quarter ended June 30, 2023 (2QFY2023) compared with RM1.81 million or 0.25 sen per share recorded in the previous year’s corresponding quarter.

A filing by the publisher of the nation’s largest English-language newspaper showed that the group’s operating cost for the quarter rose 11.3% to RM60.95 million from RM54.75 million a year ago, increasing at a faster pace than revenue growth.

Revenue for 2QFY2023 advanced 7.7% to RM58.02 million from RM53.87 million.

The print, digital and events segment posted a lower profit before tax (PBT) of RM100,000 for the quarter from RM400,000 a year earlier due to an increase in newsprint costs. “2QFY2023 revenue [however] increased by 7% against 2QFY2022,” said Star Media.

PBT of the radio segment was RM400,000 in 2QFY2023, down 85.2% from RM2.7 million in the previous year, impacted by seasonal factors and thus lower revenue contribution from commercial airtime. Revenue from the segment slumped 15% to RM7.3 million for the quarter, as compared to RM8.6 million in 2QFY2022.

Meanwhile, the property development and investment segment recorded a PBT of RM400,000 versus a RM1.1 million loss before tax a year ago. Revenue jumped to RM2.9 million from RM700,000, mainly attributed to the launching of the Star Business Hub project.

For the first half ended June 30 (1HFY2023), Star Media’s net profit dropped 55.48% to RM1.93 million from RM4.33 million while revenue rose slightly to RM110.01 million from RM106.55 million.

On prospects, Star Media said it remains financially prudent and will continue to focus on its revenue enhancement initiatives and operational efficiency improvements.

“The group continues to increase its range of products such as the BM print publication, Majoriti 7, launched in 2022 and the recent introduction of its weekly business print publication, Star Biz7.

“Based on the prevailing market conditions, the group remains cautiously optimistic on its future outlook, while striving to sustain its financial performance,” said Star Media.

Star Media’s share price, which has risen over 28% year-to-date, finished at 38.5 sen on Tuesday. This gives the group a market capitalisation of RM280.61 million.

The Edge and its owner, Tan Sri Tong Kooi Ong, is a substantial shareholder of Star Media, after buying a 5.42% stake in the group in April.