By Lawrence Yong
Star Publications (M) Bhd said its net profit fell 22% in the first quarter of 2013 (1Q13) over the same period last year owing to lower print and new media advertisements in the months before the 13th Malaysian general election.
The company said it earned net profits of RM22.8 million from revenues of RM 220.6 million in 1Q13, which were 4.1% lower. For its print and new media mainstay, which counts for 82% of its total revenues, its pre-tax profits fell from RM53.58 million to RM43.7 million.
This was mainly due to “uncertainties related to the general election which caused advertisers to be more cautious,” the company announced to Bursa Malaysia.
Star’s main product is the mainstream English-language daily newspaper, The Star. According to the financial statement, print and new media covered for losses made in all the Star’s other business segments such as broadcasting, event and exhibition and television channel.
Star’s television channel Li TV, made huge losses. It made a RM2 million pre-tax loss in 1Q13, more than four timesthe losses recorded in 1Q12.
“Li TV Holdings Ltd had a revenue of RM1.23 million during the quarter but suffered a loss due to higher programme and marketing expenses,” Star said in the statement.
Looking ahead, the company said that it expects advertising revenue to pick up in the post GE13 period.
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