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New Straits Times
12 hours ago
- Business
- New Straits Times
Star Media faces earnings void without new property launches, says Kenanga
KUALA LUMPUR: Star Media Group Bhd could see an earnings gap if no new property projects are launched to take the place of the completed Star Business Hub, Kenanga Research said. It said the absence of this major profit contributor could lead the group into losses in the coming quarters. "This would be the case, particularly if the recent recovery in Star Media's core print, digital & events (PDE) business proves short-lived. "This concern is underscored by PDE's track record of six consecutive quarterly losses from the fourth quarter of financial year 2023 to the first quarter of financial year 2025 before its rebound in the second quarter of financial year 2025," the research house said. Kenanga Research expects Star Media to post weaker earnings in the second half of financial year 2025, following a one-off gain in the first half from the sale of the latest Star Business Hub unit in January 2025. The research house said its forecasts take a conservative view, assuming the final unit will be sold by financial year 2026 (FY26). It projected a financial year 2025 loss of RM500,000, reflecting lower progress billings at Star Business Hub, and cut FY26 earnings by 57 per cent to factor in softer advertising revenue from the radio segment. TA Securities expects Star Media's core print and radio broadcasting segments to remain under pressure, as advertisers stay cautious with spending amid inflation and wider macroeconomic challenges. "That said, we remain cautiously optimistic on the property development segment, supported by ongoing sales recognition from the Star Business Hub project and higher occupancy in its investment properties. "We also see potential merger and acquisition opportunities as a strategic avenue for Star Media to broaden its revenue base," it adds.
New Straits Times
a day ago
- Business
- New Straits Times
Star Media swings to loss in Q2 on weaker property revenue
KUALA LUMPUR: Star Media Group Bhd posted a net loss of RM231,000 for the second quarter ended June 30, 2025 (2Q25), compared with a net profit of RM7.49 million a year earlier, dragged by lower property development revenue. Quarterly revenue slipped 31 per cent to RM51.5 million from RM74.1 million in the same period, mainly due to the completion of progress billings from units sold in its Star Business Hub project. In a filing with Bursa Malaysia, the company said pre-tax profit fell to RM318,000 from RM7.55 million in the second quarter of 2024. Its print, digital and events segment saw a slight revenue decline of two per cent to RM42.1 million. However, pre-tax profit improved to RM2.7 million from RM1 million a year earlier, supported by better cost control. Radio broadcasting revenue grew two per cent to RM6.4 million, with pre-tax profit rising to RM231,000 versus RM186,000 previously. Property development and investment revenue plunged 83 per cent to RM4.4 million from RM25.6 million, leading to a lower pre-tax profit of RM2.3 million compared with RM10.6 million last year. The company cited changes in United States (US) foreign policy and ongoing geopolitical tensions as challenges weighing on the media industry's outlook for 2025. "The US tariffs war has impacted global trade flows and economic sentiment. These developments will impede economic recovery and increase cost-of-living pressures, thus hindering the industry's prospects," it said. Despite macroeconomic headwinds and industry disruptions, Star Media said it remains confident in its ability to stay resilient and adapt. It added that it will continue providing creative media solutions to clients while maintaining disciplined cost management.
