NEWS: Star to grow revenue from online media

Plans for more projects after getting MSC status

PETALING JAYA: Star Publications (M) Bhd is working towards increasing revenue from online media to replace revenue that may be reduced in its print media due to the economic downturn.

The group had put in place a number of mechanisms so that whatever revenue was reduced in the print media, it would try to offset with other streams of revenue, executive deputy chairman Datuk Clement Hii told reporters after the company AGM yesterday.

There were online portals, for instance, in the group and although their revenue was insignificant relative to that in the print media, it would grow over the next few years, he added.

The group has applied for the Multimedia Super Corridor (MSC) status for its online media subsidiaries.


From left: Star Publications (M) Bhd’s chairman Datuk Leong Tang Chong, executive deputy chairman Datuk Clement Hii and group MD and CEO Datin Linda Ngiam at the AGM on Tuesday.
When approval for that is received, the plans for the online operations would be implemented more aggressively.

There were several interesting projects in the pipeline, he added.

The Star Online website receives 54 million pageviews a month. The revenue for the website does not correspond with the number of viewers it has.

Hii said he hoped that would change. Meanwhile, Star Publications announced to Bursa Malaysia yesterday it posted a lower net profit of RM18.3mil in its first quarter ended March 31 compared to RM42.5mil in the corresponding quarter last year.

The company said this was due to lower revenue and higher cost of direct materials. The revenue in the first quarter was RM181mil, a decline from RM204mil in the previous corresponding quarter.

In explaining the lower revenue in the first quarter, Hii said the advertising revenue for the first quarter of 2008 was particularly high due to the general election and other major events then.

“The record revenue for that period was a one-off occurrence. Our income for subsequent quarters would be a more accurate comparison,” he added.