Star declares bumper dividend, considers investments outside media

PETALING JAYA: Star Media Group Bhd, which will be sitting on a healthy pile of cash following the disposal of its Singapore subsidiary, will consider investments outside its core media sector as long as the returns enhance the performance of the company and value to stakeholders.

The company has also declared a bumper dividend of 30 sen per share in addition to the six sen interim dividend. The shares will go ex-dividend on Sept 29 and will be paid out on Oct 17.

Generally, analysts have been speculating of a bumper dividend since the sale of Cityneon.

The company said that the fast-evolving media landscape into all things digital and the ever-changing consumer preference made it a priority for Star Media Group to maintain its engagement with its audience via the latest technology.

While pursuing a digital-focused approach and defending its print business, Star Media Group is also cognisant of the opportunities that may arise in other industries.

“The company will consider investments in non-core businesses which have the potential to enhance the performance of the group,” it stated in the notes accompanying its latest quarterly results.

The company’s net cash position will increase significantly following the disposal of Singapore-listed Cityneon Holdings Ltd for S$115.61mil (RM360.18mil), a deal that was completed on July 12.

As at the end of June this year, the compa- ny had cash

RM374.59mil.

In the second quarter to end June, the company registered a net profit of RM8.51mil on a turnover of RM129.38mil, while for the sixmonth period, the accumulated net profit attributable to the owners was RM15.16mil on a turnover of RM260.51mil.

In the corresponding quarter last year, the company registered a net profit of RM43.68mil on a turnover of RM165.54mil.

Group revenue in the second quarter decreased by 21.8% to RM129.38mil from RM165.54mil in the corresponding quarter of the preceding year mainly due to lower contribution from the print and digital as well as event and exhibition segment.

Star Media Group’s print and digital segment, which is the mainstay of the company, saw a drop in its overall profit before tax to RM2.99mil in the second quarter from RM23.02mil last year due to a 22.3% decline in advertising revenue.

The decline in advertising revenue generally follows the industry trend where advertising expenditure (adex) fell by 24.2% in the second quarter of 2017 against the corresponding quarter in 2016 due to poor market sentiment.

Going forward, the company will continue to focus and strengthen its key strategies in the media industry.

“We will continue to defend the print segment whilst building on our other media platforms and also continue our prudent cost management,” it said. and cash equivalents of