mStar Online gets encouraging response
PETALING JAYA: Star Publications (M) Bhd yesterday reported flat revenue and a slight drop in pre-tax profit for the first quarter ended March 31.
Revenue was marginally higher at RM168.8mil compared with RM168.7mil previously, while pre-tax profit was at RM38.9mil from RM40.6mil in the previous corresponding quarter due to higher direct costs and depreciation.
Net profit for the quarter stood at RM31.6mil, or 8.83 sen a share, compared with RM33mil, or 10.11 sen a share, in the same quarter last year, the company said in a filing to Bursa Malaysia.
On the prospects for this year, Star Publications said the Malaysian economy was expected to maintain its growth momentum in 2006 despite the increasing challenges of higher inflation due to higher oil prices and possible power tariff increase.
The gross domestic product was expected to grow by 6% while advertising expenditure (adex) was projected to continue to grow albeit at a slower pace.
The company said the slower growth in adex and higher newsprint cost were expected to have a slight impact on the group's results.
“However, with further improvements to operating efficiency and cost controls, the board of directors expects the Star group's results to continue with its satisfactory level of performance for the financial year ending Dec 31, 2006,'' the company said.
Star Publications group managing director and chief executive officer Datuk Steven Tan said after the company AGM and EGM yesterday the company was confident of maintaining the newspaper's circulation figures in the coming year.
According to the Audit Bureau of Circulation, The Star daily newspaper had a circulation of 299,589 from July 1, 2004 to June 30, 2005 while the Sunday Star's circulation hit 316,463 during the period.
Tan said mStar Online, The Star's Bahasa Malaysia news portal which was launched on Oct 31 last year, also received encouraging response from the public.
All resolutions at the AGM and EGM were approved. The Star (19 May 2006)