Star Media Group sees dip in print and radio revenue as ad spend slides

Star Media Group has posted a revenue of RM82.57 million during the first quarter of 2019 (Q1 2019), a dip from its RM109.1 million last year. Meanwhile, its profit before tax for Q1 2019 dropped from RM17.59 million last year to RM5.71 million due to lower revenue from its print and radio segments.According to the financial statement, Star Media Group’s print and digital segment posted a profit before tax of RM3.65 million in Q1 2019 as compared to RM16.96 million last year. Its radio segment generated a revenue of RM5.38 million in Q1 2019 as compared to RM8.24 million during the same period last year, despite the slowdown in ad spending.Meanwhile, revenue for its event and exhibition segment declined to RM5.28 million from RM6.01 million due to lesser events held in Q1 2019 as compared to Q1 2018. This segment saw a profit before tax of RM1.62 million in Q1 2019, compared to RM2.69 million last year.Star Media Group said in its financial statement that while ad expenditure is expected to be “soft” and remain challenging due to weak sentiments, it expects the print and digital segments to “perform satisfactorily” in 2019 as a result of better cost management following the mutual separation scheme and early retirement option exercise.“We also expect robust revenue growth from the digital segment as more advertisers migrate into this space. We would also be driving new revenue streams beyond print. We will continue to focus on using new technologies and analytics to improve, deepen and predict how our customers consume content with the end goal of increasing engagement and monetisation,” the group added in its financial statement.Its radio segment is expected to “contribute positively” to the group results despite being affected by lower ad expenditure. The group said it continues to focus on Chinese and Malay audiences, enabling 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.In the meantime, the group believes it is in a “better position” to capture the market in a more meaningful way with dimsum, its subscription-based video streaming service, being accessible via mobile, Chromecast, Apple Airplay, Samsung Smart TV and Android TV.Read also:Star Media Group’s COO Roy Tan exitsStar Media Group names temporary special committee to lead operationsStar Media Group’s Wong Chun Wai to retire as MD and CEOStar Media Group’s print and digital revenue slides as ad spend momentum drops(Photo courtesy: 123RF)