Star Media Group's quarterly loss widens on lower ad income

Star Media Group (SMG) has recorded a net loss of RM3.62 million for the third quarter ended 30 September (Q3FY2025), in comparison with the profit of RM2.5 million it made for the same three-month period in 2024. This is on the back of a decline in revenue by 20% y-o-y to RM47.9 million versus RM59.6 million due to weaker advertising demand. 

According to its filings with Bursa Malaysia, SMG said the decline was mainly due to the completion of the Star Business Hub development project in Q2 of 2025, which resulted in lower contributions from the property development and investment segment in the latest quarter.

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For its prints, digital and events segment, the group's revenue declined by 7% to RM41.4 million, from RM44.6 million in the corresponding quarter of 2024, "primarily due to lower advertising income as the segment continued to be impacted by the softness in advertising spend". For radio broadcasting, SMG recorded a 17% decrease in revenue from RM7.7 million, to RM6.4 million in Q3. This was because of softer adex, and higher operating costs.

This also marks the group's second consecutive quarter of losses, from a net loss of RM231,000 in Q2FY2025, to a net loss of RM3.6 million this current quarter.

On prospects, SMG said in its filing that despite Malaysia’s positive economic outlook, the shifts in U.S. foreign policy and geopolitical tensions continue to weigh on the recovery of certain business sectors, leading to a slowdown in the advertising industry.

"These challenges are expected to moderate the pace of recovery and intensify cost-of-living pressures, thereby affecting overall sentiment. Nevertheless, the group remains resilient and adaptable, continuing to deliver innovative media offerings while exercising prudent financial management."
 
It added that it would continue to actively pursue opportunities of revenue diversification and sustainable growth, leveraging on its strong financial foundation. The group remains cash-rich, sitting on a net cash balance of RM348.2 million at the end of September. 

Photo courtesy of Star Media Group.

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