The Star posts lower profit
Filed Under (Business News) by Webmaster on 26-02-2009
Tagged Under : earning, The Star Publication
Star Publications (M) Bhd (6084) posted a lower net profit of RM13.3mil, or 1.8 sen per share, for the fourth quarter ended Dec 31, which was mainly due to goodwill impairment.
The group’s revenue during the quarter declined marginally to RM211.6mil from RM212.6mil in the corresponding period last year while pre-tax profit was lower at RM23.8mil from RM70.6mil before.
“The group’s profit before tax for the current quarter was lower at RM23.8mil compared with 2007 corresponding results of RM70.68mil due to higher operating expenses and goodwill impairment in the current quarter,” the company said in a statement to Bursa Malaysia yesterday.
For the financial year ended Dec 31 (FY08), Star posted revenue of RM831mil, up 3% from RM805.8mil in FY07.
Datuk Leong Tang Chong
However, its net profit was 17.8% lower at RM138.9mil, or 18.81 sen per share, against RM169.1mil in FY07.
Star announced a second interim dividend of 7.5 sen per share less tax and a special tax exempt dividend of 3 sen per share for FY08. The ex-date of the dividend is March 27 while the entitlement date is March 31.
The results of the financial year and quarter under review were partly affected by the goodwill impairment made in the current quarter, Star said in its results statement.
According to the Malaysian Institute of Economic Research, monthly indicators have been losing momentum and industrial output have contracted. It also reported that consumer and business confidence have dropped sharply.
“These are all evidence of a softer economic condition affecting the performance of the company and the group,” Star said.
Nielsen Media Research expects a slowing down in advertising expenditure in 2009 due to the weak economic climate and the absence of major events.
“Despite the challenging circumstances, the board of directors expects the performance for the year ending Dec 31, 2009 to be reasonably satisfactory,” Star said.
In a separate filing with Bursa Malaysia, Star said non-executive director Datuk Leong Tang Chong was redesignated chairman yesterday.
Leong has his own legal practice Messrs TC Leong & Co. His appointment follows the resignation of Tan Sri Lau Yin Pin as chairman on the same day. – The Star
