Star Media posts Q1 net loss on muted advertising revenue

Star Media Group slipped into the red in the first quarter ended March 31, 2026, as weaker advertising revenue and the completion of a key property project weighed on performance.

The media and property group reported a net loss of RM8.5 million, compared to a net profit of RM0.31 million in the corresponding quarter last year. Revenue fell 33.7% year on year to RM39.42 million from RM59.44 million.

According to the group’s Bursa Malaysia filing, the decline was primarily driven by softer advertising expenditure amid broader economic uncertainty and geopolitical tensions, alongside competitive pricing pressures in the media market.

Don't miss: Astro records stronger ad growth, but FY2026 dips 

“The media landscape also faced headwinds as advertising expenditure softened amid broader economic uncertainties and geopolitical tensions,” Star Media said, adding that advertisers remained cautious in their spending.

The print, digital and events segment recorded lower revenue as advertising demand weakened, while the radio broadcasting segment also saw a decline as clients reduced budgets and pricing competition intensified.

The print, digital and events segment posted a 13% decline in revenue to RM31 million, resulting in a loss before tax of RM5.6 million. Meanwhile, radio broadcasting revenue fell 11% to RM7.9 million, with profit before tax declining to RM1 million.

Star Media’s property development and investment segment also saw a sharp drop in revenue to RM2 million from RM16.5 million a year earlier, following the completion of the Star Business Hub development project in the second quarter of 2025. The segment swung to a loss before tax of RM0.2 million from a profit of RM6.5 million previously.

The group also noted that its bottom line was affected by the absence of a one-off RM4.1 million gain from the disposal of an investment property, which had boosted earnings in the prior period.

Looking ahead, Star Media said global economic uncertainty and evolving trade policies are expected to continue weighing on advertising expenditure across the industry.

In response, the group said it will focus on strengthening its digital ecosystem, data analytics capabilities and integrated media solutions, while also expanding its income base through investments such as TrustCapital Australian Office Fund No 3.

“While the near-term outlook remains challenging, the group is confident that its disciplined approach to financial management and focus on digital innovation will enable it to navigate the current environment and emerge more resilient,” it said.

Earlier in March this year, Astro Malaysia Holdings reported two consecutive quarters of revenue growth to close FY2026, signalling momentum in its ongoing transformation strategy, even as its full-year performance came in weaker compared to the previous year.

The media and entertainment group's advertising business showed signs of recovery, with advertising expenditure (adex) rising 18% quarter-on-quarter in Q4FY2026. The growth was driven by stronger demand across television, radio and digital platforms.

The group pointed to strong audience engagement as a key highlight. Astro recorded nearly 20 billion views across television, radio, streaming and digital platforms in 2025, with local and vernacular content accounting for 81% of total viewing, a 2% year-on-year increase.

Related articles: 
Star Media Group's quarterly loss widens on lower ad income
Star Media Group partners Antsomi to enhance customer data strategy 
Star Media Group elevates Lydia Wang to COO