Star Media Group Q2 2025: Navigating Headwinds with Core Media Resilience
Star Media Group Berhad has just released its financial results for the second quarter ended June 30, 2025. At first glance, the headline figures show a significant drop in revenue and profit. However, a deeper dive into the report reveals a story of operational resilience in its core media segments, overshadowed by the cyclical nature of its property development business. Let’s break down the numbers and see what they mean for the company moving forward.
Core Data Highlights: A Tale of Two Halves
The overall performance for Q2 2025 saw a notable decline when compared to the same period last year. This was largely anticipated and driven by the property development segment, which had a much stronger contribution in 2024.
Q2 2025 Results
Revenue: RM51.5 million
Profit Before Tax: RM0.3 million
Net Loss: (RM0.23 million)
Earnings Per Share (EPS): (0.03 sen)
Q2 2024 Results
Revenue: RM74.1 million
Profit Before Tax: RM7.6 million
Net Profit: RM7.5 million
Earnings Per Share (EPS): 1.03 sen
The primary driver for this 31% year-on-year revenue decrease was the lower contribution from the Property Development & Investment segment, following the completion of progress billings for the Star Business Hub project which boosted 2024’s figures.
Segment Performance Breakdown
Looking at the individual business units gives us a clearer picture of the Group’s operational health.
Print, Digital and Events: Profitability Shines Through
This core segment saw a slight 2% dip in revenue to RM42.1 million. However, despite the challenging economic climate affecting advertising income, the segment’s profit before tax surged to RM2.7 million from RM1.0 million last year. This impressive improvement points to successful and disciplined cost management, a crucial strength in the current market.
Radio Broadcasting: Steady and Stable
The radio segment demonstrated consistent performance, with revenue inching up by 2% to RM6.4 million. Profit before tax also saw a modest increase to RM0.23 million. While the segment is also feeling the effects of a soft advertising market, it continues to hold its ground and contribute positively.
Property Development & Investment: A High Base Effect
This segment’s performance explains the Group’s overall decline. Revenue fell 83% to RM4.4 million compared to RM25.6 million in Q2 2024. This was expected, as the prior year’s results were significantly higher due to substantial progress billings from the Star Business Hub project. Consequently, pre-tax profit for the segment decreased to RM2.3 million from RM10.6 million.
Strong Financial Footing
Despite the profit dip, Star Media Group maintains a robust financial position. The company holds a substantial cash and bank balance of RM352.5 million as of June 30, 2025. This strong liquidity provides a solid foundation for navigating market uncertainties and investing in future growth opportunities.
Risk and Prospect Analysis
The company acknowledges a challenging outlook for the remainder of 2025. Global economic sentiment is being dampened by geopolitical tensions and shifts in U.S. trade policy, which could continue to pressure advertising budgets and impact the media industry. These macroeconomic headwinds are creating a tough environment for economic recovery.
In response, Star Media Group’s strategy is clear: focus on resilience and adaptability. The management is committed to practicing disciplined cost control, as evidenced by the improved profitability in the print segment. Furthermore, the Group is leveraging its strong financial base to actively seek opportunities for revenue diversification to ensure sustainable, long-term growth.
Summary and Outlook
In summary, Star Media Group’s Q2 2025 performance was a mixed bag. While the headline numbers were pulled down by the predictable slowdown in the property segment, the core media businesses—particularly Print, Digital, and Events—demonstrated commendable resilience and improved profitability through effective cost management. The Group’s significant cash reserves remain a key strength, providing stability and strategic flexibility.
Looking ahead, the path is challenging but the strategy is sound. The focus will be on weathering the external economic pressures while continuing to innovate and diversify. Key risks for investors to monitor include:
- Macroeconomic Headwinds: Ongoing geopolitical tensions and U.S. tariff policies could continue to soften the advertising market, impacting media revenue streams.
- Property Segment Volatility: The cyclical nature of property development will likely lead to fluctuating contributions to the Group’s overall earnings in the short term.
- Continued Media Disruption: The industry continues to evolve rapidly, requiring constant adaptation and investment to stay competitive and relevant to advertisers and consumers.
My Professional Take
From my perspective, this report should be viewed with nuance. The sharp drop in profit is jarring, but it’s crucial to understand the “why”—the high base effect from a property project is a temporary, cyclical factor. The real story lies in the improved profitability of the core media segment, which speaks volumes about the management’s ability to control costs and adapt in a tough market. The company’s fortress-like balance sheet, with over RM350 million in cash, is a significant advantage that cannot be overstated. It gives them the firepower to navigate downturns and invest in new ventures.
The key question now is how the Group will deploy this capital to build new, sustainable revenue streams to complement its traditional media business.
What are your thoughts on Star Media Group’s latest results? Do you think their cost control measures are enough to sustain them through the current economic climate? Share your views in the comments below!
