STAR MEDIA GROUP BHD (SMG) will be beefing up its digital assets to make them one of the main revenue generators for the company.
Group chairman Datuk Fu Ah Kiow said the company’s digitisation and transformation plan that has been undertaken since two years ago, has been yielding positive results.
“We will further strengthen our digital assets especially in monetising them in terms of revenue and to reach out to more consumers.
“We believe all these should be able to bring in more revenue for us going forward,” he said in an interview after SMG’s annual general meeting (AGM).
Fu added that the media industry is not spared from the impact of the coronavirus (Covid-19) pandemic and SMG will be undertaking all necessary action to cut costs.
He said SMG will have to revamp and reorganise some of its structure so that it will be more efficient and productive in handling the post-Covid era.
On the group’s plans for merger and acquisition (M&A), Fu stressed it will not be restricted to any areas although priority will be on those with synergy with SMG’s current businesses.
“But we are not ruling out sectors which have no synergy with the current businesses at the moment.
“We are looking at those which are already making some money and some expansion. Ideally, those that we can leverage on each other for further expansion,” said Fu.
SMG has a strong balance sheet with cash reserves of more than RM300mil with no borrowings as of March 31, 2020, which will serve as a solid base for the group to capitalise on any M&A opportunities.
For the financial year ended Dec 31, 2019, SMG posted a strong 63.87% jump year-on-year (y-o-y) in its profit before tax to RM14.64mil although revenue came in 19.54% lower y-o-y at RM315.93mil.
The AGM was chaired by the group’s independent non-executive director Chan Seng Fatt following one of the guidelines by the Securities Commission that no one above the age of 60 should be physically present at the AGM in light of the ongoing Covid-19 pandemic.
“This is the first time we’re having our AGM virtually and by and large, our arrangements have met all the requirements of the AGM.
“Our shareholders have asked constructive questions and they are very concerned about the performance and progress of the company,” said Fu, adding that the AGM this year also saw the company’s key staff coming forward to answer the questions from the shareholders, which demonstrated the strength of the new team of leaders that will bring SMG to greater heights.
All seven ordinary resolutions were passed by the shareholders at the AGM.