Star Media Group eyes better revenue sustainability with mergers and acquisitions strategy

Star Media Group will reportedly be focusing on profitable mergers and acquisitions as it aims to diversify its income stream in the future, said group CEO Chan Seng Fatt.

The group hopes to achieve improved financial performance over the next two years through a strategy that will provide better long-term earnings sustainability as the company fortifies its revenue, added Chan, as reported by The Star. Chan also said that he is optimistic about the group’s outlook.

Don't miss: The Edge and its owner no longer substantial shareholders of Star Media

Star Media Group must move forward with agility and capitalise on opportunities while adapting to shifting economic sentiments, added retiring chairman Chor Chee Heung.

At the same time, the group announced that Mohd Aminuddin Mohd Rouse has retired as a director of the company.

Current brands under Star Media Group include print and digital publication The Star, food and beverage site Kuali, property development company SMG Land along with radio stations 988 and Suria.

In fact, the pre-tax earnings of SMG Land had offset the pre-tax loss of the group’s print, digital and events segment.

When asked if Star Media Group would make its property development division its core business, Chan reportedly explained that SMG Land has not ventured into any new land bank and that its potential depends on the results of current projects.

Star Media Group has always been media-centric with no plans to switch its core business, said non-executive director Tee Chew Lay. She also added that the group will review its strategies to elevate its media offerings.

One such way is by capturing new groups of readers through the inclusion of more updated and trendy content that includes discussions on AI, esports, education and lifestyle, said Chan.

A+M has reached out for more information.

Recently, it was announced that The Edge Communications and its owner, Tong Kooi Ong, are reportedly no longer substantial shareholders in Star Media Group. This is following the latest share sale it held last week.

According to The Edge, Tong sold out his stakes of 0.2% (1.45 million shares) on 2 and 3 May. The Edge, on the other hand, reportedly sold 1.5 million shares on 3 May.

The transaction price was not disclosed.

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