KUALA LUMPUR (Nov 25): Star Media Group Bhd (KL:STAR) slipped deeper into the red in the recently ended quarter as weaker advertising income and a sharp decline in property-related contributions weighed on its performance.

The media group reported a net loss of RM3.62 million during the third quarter ended Sept 30, 2025 (3QFY2025), compared with a net profit of RM2.5 million in the corresponding quarter last year, according to its filing with Bursa Malaysia on Tuesday.

It is the group's second consecutive quarter of losses.

Revenue fell nearly 20% year-on-year (y-o-y) to RM47.91 million from RM59.63 million, mainly due to softer advertising demand.

The completion of the Star Business Hub development project in 2QFY2025 significantly reduced progress billings from the property development and investment segment, it added.

All core business divisions — print, digital and events; radio broadcasting; as well as property development and investment — registered lower revenue during the quarter, with the property development and investment segment experiencing the steepest decline.

The group remains cash-rich, sitting on a net cash balance of RM348.17 million as at end-September.  No dividend was declared.

Looking ahead, Star Media cautioned that despite Malaysia’s broadly positive economic outlook, geopolitical tensions and shifts in US foreign policy continue to cloud business sentiment, particularly within sectors dependent on advertising.

“These challenges are expected to moderate the pace of recovery and intensify cost-of-living pressures, thereby affecting overall sentiment.

"Nevertheless, the group remains resilient and adaptable, continuing to deliver innovative media offerings while exercising prudent financial management,” it said.

In the quarter, lower market spending saw its print, digital and events segment profit before tax fall sharply to RM1.7 million, as revenue fell 7% y-o-y to RM41.4 million.

Meanwhile, the radio broadcasting division also saw revenue decline 17% y-o-y to RM6.4 million with a loss before tax of RM1.4 million. The group attributed this to weaker ad spending and higher operating costs, including a one-off event expense.

On its property development and investment, the segment revenue tumbled 77% y-o-y to RM2 million, as the prior-year period benefited from higher progress billings for units sold under the Star Business Hub project.

Overall for the nine-month period ended Sept 30, 2025 (9MFY2025), Star Media's net loss widened to RM3.53 million from a net profit of RM9.80 million last year, as revenue fell 15% to RM158.85 million from RM187.06 million.

Shares of Star Media closed half a sen or 1.35% lower at 36 sen on Tuesday, giving the group a market capitalisation of RM265.93 million. Year-to-date, the counter is down more than 8%.