Star 2Q net profit up 10.3% to RM55.25m, declares 9c dividend

KUALA LUMPUR: Star Publications (Malaysia) Bhd net profit for the second quarter ended June 30, 2011 rose 10.3% to RM55.25 million from RM50.08 million a year earlier, due mainly to lower newsprint cost.

It said on Thursday, Aug 18 that revenue for the quarter dipped slightly to RM294.25 million from RM295.74 million due to the decline in the revenue of event, exhibition, interior and thematic segment.

Earnings per share was 7.48 sen while net assets per share was RM1.41.

Star declared an interim dividend of 6 sen per share, single tier and a special tax exempt dividend of three sen per share to be paid on Oct 18.

For the six months ended June 30, Star’s net profit rose to RM95.52 million from RM87.91 million in 2010, on the back of revenue RM522.28 million.

On its prospects, Star said the economic outlook over the next six months is mixed, adding that domestically, the Malaysian Institute of Economic Research (MIER) has projected that the economy will expand by 5.2% year-on-year in the second half of 2011, underpinned by projects under the government's Economic Transformation Program (ETP).

Globally, however, the economic outlook is less certain because of problems in the European Union and the United States of America, it said.

“The company will take the necessary measures to ensure that business will continue to grow amidst the uncertainty and challenges.

“Barring any unforeseen circumstances, the board of directors expects the company to perform satisfactorily for the remaining period of financial year ending Dec 31, 2011,” it said.