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PETALING JAYA: Star Media Group Bhd
(SMG) posted a net profit of RM26.9k for its third quarter ended September 30, 2020, as the rebound in business activity was coupled with a sharp increase in revenue from the second quarter of this year.
With the help of an exceptional item of RM50.5 thousand after the recognition of the compensation of a legal case that helped with its bottom line, SMG said that the revenue for the third quarter was RM48.2 thousand, an increase of 53% from RM31 .5 thousand registered in the second quarter.
In a filing with Bursa Malaysia on Thursday, he said that the profit before tax for the third quarter was RM33.1 thousand, mainly due to the recognition of compensation income for the late delivery of the vacant possession of the investment property under construction of Jaks Island Circle Sdn. Bhd worth RM50.5mil.
On the performance of its business units, SMG said that its print and digital business segment posted a pre-tax profit of RM33.7k in the third quarter compared to a pre-tax loss of RM0.28k in the same quarter of last year. mainly due to the recognition of income from compensation for delay in delivery.
For its radio segment, SMG said that the commercial segment generated revenues of RM5.5k in the third quarter compared to RM6.6k in the third quarter of 2019. The decrease was mainly attributed to cautious spending by advertisers and the weak ad market due to the Covid-19 pandemic.
Regarding the events and exposures segment, it recorded a pre-tax loss of RM0.78 thousand in the last quarter compared to a pre-tax profit of RM0.73 thousand in the third quarter of 2019. The pandemic and the control orders of Prolonged movement has caused many of its offline events to be canceled, he explained.
Despite the challenging environment, SMG said it has continued to advance its digital transformation initiatives to improve its costs and operational efficiencies.
In March 2020, The Star Online launched its paywall as part of the group’s monetization strategies to diversify sources of income. Due to SOP restrictions to combat the Covid-19 pandemic, SMG said it has held a number of virtual fairs and events instead of physical ones and launched a number of new products and digital platforms, including TheStarMall, BeliLokal and their Suria mobile. application to reach even more audiences.
“With the continuous enrichment of our collection of databases, our products are equipped with premium access, special features and newsletters to meet the demand for digital advertising of our customers,” he said.
The Group said it expects revenue growth from its digital segment despite mild and challenging market conditions and that it will focus on using new technologies and analytics to improve, deepen and predict how its customers consume content with the goal. end of increasing engagement and monetization to drive new revenue streams beyond your printing business.
He said his SMG Brand Studio provided advertisers with a full suite of services that would complement the growth of digital platforms and he hoped to increase ad acceptance rates during these uncertain times and achieve further growth in the near future.
The group said it has embarked on various cost-cutting measures and efforts are also being directed to restructure some of the business units within the group to restructure operations, including streamlining the workforce and realignments to return to the market, especially at the stall. -MCO period.
SMG said it has a strong balance sheet with cash reserves of over RM300k and no loans at the end of the third quarter, which would act as the basis for the group to capitalize on M&A opportunities during market consolidation, and even penetrate into new businesses with promising prospects.
“With its strong financial position, the board is confident that the group is well positioned to overcome these unprecedented challenges,” he said.
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