Star Media Group print and digital revenue dips amidst RM54.76m net loss

share on

twitter /
facebook /
linkedin /
- email
- telegram
- whatsapp
- wechat
- pinterest
- line
- snapchat
- reddit

Star Media Group posted net loss of RM54.76 million for the third quarter of 2021, compared with a net profit of RM26.92 million during the same period last year, as a result of the reversal of compensation income. Meanwhile, its revenue was RM46.24 million during the third quarter of 2021, which dropped marginally by 4% as compared to 3Q 2020. Its print and digital revenue in Q3 2021 dipped against Q3 2020 but also saw double-digit growth in digital revenue against the last corresponding quarter. This growth was attributable to the increase in digital advertorial, growth marketing and paywall subscription revenue.

The Group's print and digital segment recorded a lower loss before tax of RM4.27 million in Q3 2021 as compared with RM16.87 million in Q3 2020 if the one-off items mentioned above are excluded in respective periods. Meanwhile, its radio segment generated a higher revenue amounting to RM5.59 million in Q3 2021 as compared with RM5.54 million in Q3 2020. This segment recorded a profit before tax of RM0.10 million compared with a loss of RM0.38 million in Q3 2020 mainly due to better cost management.

On the event and exhibition front, the Group witnessed a loss amounting to RM0.28 million in Q3 2021 compared with RM0.78 million in the corresponding quarter. While the pandemic resulted in several of its offline events being cancelled, the Group took this opportunity to explore online alternatives such as webinars and Virtual Fairs to limit the fallout from these cancelled events.

March 2021 marked a year since the first Movement Control Order and the implementation of the paywall for The Star Online. This followed a group-wide "Subscribe and Win" campaign launched in the first quarter of this year to drive more subscriptions. According to the Group, there has been steady growth despite the uncertain economic situation.

The Group also experienced significant growth in the Malay target segment with mStar taking the lead in its content category, peaking at 8.5 million unique visitors in September. In view of rapid changes in media consumption trends, the Group will focus on sustaining its investment in the digital space and attracting digital revenue. This will be done by introducing new products and rejuvenating existing ones to keep up with the changing market needs.

"The Group will remain focused on its digital transformation initiatives and strategies across all media platforms and will continue to improve its operational efficiencies. Amid the challenging media industry landscape, the Group is also on the lookout for merger and acquisition opportunities as well as to penetrate into new businesses that have a promising outlook," the financial statement said.

In July, the Group rolled out an ad-free premium plan for The Star Digital Access in response to popular demand for the Digital Access membership since its launch in March 2020. The new plan aims to give members an uninterrupted and seamless reading experience, along with full access to The Star via the website and the mobile application. It is also offering premium plan subscribers extensive access to news, features, videos, interactive graphics as well as exclusive members-only content.

The Group embarked on a retrenchment exercise late last year after its recent mutual separation scheme (MSS) "did not yield the expected headcount reduction that would have helped the Group cushion the impact of the sustained soft business," CFO Sam Au said in an internal memo previously seen by A+M. As such, the retrenchment exercise aims to meet its intended staff cost reduction targets and will commence in the fourth quarter of 2020. A few months later, the company appointed Alex Yeow as its new group CEO earlier this year, replacing Andreas Vogiatzakis who stepped down last year.

Following a strategic review by the management this year, the Group also shut its video-on-demand service dimsum entertainment on 30 September. It also witnessed the departures of COO, digital and print, Kang Yew Jin, and CMO, product division, Lam Swee Kim in May this year.

Power up your PR and communications efforts today with MARKETING-INTERACTIVE's PR Asia Week on 1 and 2 December. Learn ways to build an evidence-based practice, up the ante on your strategies, and be head and shoulders above your competition. Click here to register today!

Photo courtesy: 123RF