Star Publications’ 3Q net profit lower at RM34.3m from RM44.05m a year ago

by **Cals** Fri 21 Nov 2014, 01:46

Star Publications’ 3Q net profit lower at RM34.3m from RM44.05m a year ago

KUALA LUMPUR: Star Publications (Malaysia) Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s net profit came in lower at RM34.3 million for the third financial quarter ended Sept 30, 2014 (3QFY14) from RM44.05 million a year ago.
The media group’s earnings were affected by dampening of overall advertising expenditure, which brought the performance of its print and digital segment down.
The other factors included the weak market sentiments, economic uncertainties, the fuel price increase, the increase in interests rate, and the voluntary separation scheme (VSS) exercise to reduce the group’s headcount.
The group spent RM11.5 million in payouts for its VSS exercise, which will see future savings in its operating expenses. In a filing with Bursa Malaysia yesterday, Star reported a 6.4% decrease in revenue to RM247.18 million in 3QFY14, against RM264.22 million a year ago, which was attributed to the lower revenue contribution from the print segment.
Earnings per share for 3QFY14 was lower at 4.65 sen per share, against 5.97 sen in 3QFY13. For the nine months ended Sept 30, FY14 (9MFY14), Star reported a net profit of RM89.93 million — an 8.8% decrease compared with RM98.67 million achieved a year ago, due to higher operating expenses mainly related to a VSS amounting to RM11.5 million. Revenue for 9MFY14 declined marginally by 0.4% to RM732.85 million.

This article first appeared in The Edge Financial Daily, on November 20, 2014.