Star Media Group will cease all its printing activities at Star Northern Hub (SNH) in Penang this September, in line with efforts to centralise nationwide printing. This is part of its ongoing cost rationalisation exercise.
According to a Bursa filing, the group said that the move will involve staff redundancies, consideration of future utilisation of the land and building at SNH and disposal of the pressline. The group, however, will still continue with its print business and all newspapers will be printed at the Star Media Hub in Shah Alam, Selangor. As such, Star Media Group does not foresee any “significant adverse impact” to its newspaper circulation in the northern region.
The filing also stated that the announcement will not effect the group’s share capital and substantial shareholders’ shareholdings. It will also not have any material effect on the gearing, consolidated earnings, earnings per share and net assets per share of the group for the financial year ending 31 December 2018.
Last week, the group said it will further expand on its digital plans revolving around its Star Online news portal, as it continues with its transformation exercise, as well as cut cost and improve operating margins. Some of its cost cutting measures include reduction in headcount.
Star Media Group posted a net profit of RM87.44mil for the financial year ended 31 December 2017. Its print and digital segment recorded an 18.3% decrease in revenue to RM37.75 million, due to poor consumer and business sentiment. Last November, however, it added that it will continue to defend the print segment while building on other media platforms.