KUALA LUMPUR (Aug 20): Star Media Group Bhd’s (KL:STAR) reported a steep jump in net profit for the second quarter from a year earlier as profits from its property development segment offset widening losses at its mainstay print business.

Net profit for the three months ended June 30, 2024 (2QFY2024) was RM7.49 million compared to RM791,000 in the same period last year, Star Media said in an exchange filing. The quarter was also its best since 3QFY2020, thanks to higher progress billings from the Star Business Hub project.

Star Media also incurred a significantly lower tax expense of RM63,000 versus RM434,000 in the same quarter last year. Revenue for the quarter increased 27.76% year-on-year to RM74.13 million from RM58.02 million.

Looking ahead, Star Media expects the advertising industry to remain challenging in the second half of the year. However, the group said it will continue to monitor business conditions, ensure operational efficiency, and practice prudent cost management.

“The property development and investment business segment is expected to contribute positively to the group’s revenue and profitability” in the second half of 2024, the company added.

The segment that houses its print, digital and events businesses suffered a wider loss before tax of RM3.7 million against RM300,000 a year ago, as clients’ marketing budget cuts due to the tough business environment affected advertising. Revenue for the segment shrunk by 11% to RM43.1 million from RM48.4 million a year earlier.

The radio broadcasting segment’s profit before tax, meanwhile, narrowed to RM200,000 from RM800,000 amid lower revenue generated from commercial airtime as competition intensified. The segment generated revenue of RM6.3 million, down 14% from RM7.3 million a year ago.

As for the property development and investment segment, pre-tax profit improved to RM10.6 million from RM400,000. Its revenue surged more than eight times to RM25.6 million from RM2.9 million.

The group did not declare any dividend for 2QFY2024.

For the first half of FY2024, Star Media’s net profit grew more than threefold to RM7.29 million, from RM1.93 million in the previous year, while revenue increased by 15.84% to RM127.43 million from RM110.01 million.

The company added that it will continue to explore potential merger and acquisition opportunities to diversify its income streams.

Shares of Star Media closed up half a sen or 1.2% to 42 sen on Tuesday, giving the company a market capitalisation of RM310.2 million.