Star Media Group posts 13% increase in digital revenue amidst higher group profit

Star Media Group has posted a 13% increase in digital revenue in the second quarter of its financial year ended 30 June 2019 (Q2 2019) compared to the same period last year. This segment recorded a stronger profit before tax of RM3.11 million in Q2 2019 as compared to RM2.36 million last year due to higher digital revenue, better cost management and improved performance from its OTT business, according to the financial statement.Strong performance in print and digital and better cost management controls also led Star Media Group to post a higher group profit before tax at RM3.04 million in Q2 2019, up from RM2.25 million last year.Meanwhile, revenue for its radio segment dropped from RM7.13 million in Q2 2018 to RM5.68 million in Q2 2019. The revenue drop was mainly attributed to “reduced spending by advertisers and subdued advertising market” due to poor consumer sentiment as a result of the slowing Malaysian economy and global economic uncertainties. Revenue for its event and exhibition segment also dropped to RM2.23 million from RM3.56 million due to lesser events held for the Perfect Livin Home and Lifestyle Exhibition in Q2 2019 as compared to the same period last year. Overall, Star Media Group registered a dip in revenue from RM99.5 million to RM77.8 million in Q2 2019.According to the financial statement, the group expects a “robust revenue growth” from its digital segment in the remaining year, despite “soft and challenging” market conditions. It will also continue to focus on using new technologies and analytics to improve, deepen and predict how its customers consume content with the end goal of increasing engagement and monetisation to drive new revenue streams beyond print.Meanwhile, its radio segment is expected to perform “satisfactorily” despite the slowing economy. The group said that it has continued to focus on Chinese and Malay audiences and this has allowed it to develop in-depth knowledge of its audiences.In the events and exhibition business segment, the group will continue its efforts to strengthen its market position and increase its number of events in the upcoming months. Also, the company and the board of directors will continue to focus and strengthen its key strategies to ensure a satisfactory performance for the group.In July this year, the group named former CEO of Havas Media Group Malaysia Andreas Vogiatzakis (pictured) its CEO. Vogiatzakis told A+M previously that it is an honor and a privilege to be called to serve one of the most influential media groups in Malaysia with deep heritage and strength.