The Star gets ready for new 'online' battle
The top dog may now again be an underdog. The tables seem to be turned on Star Publications (M) Bhd, if analysts are asked to ponder the digital future of the publisher of Malaysia’s leading English daily.
It has embarked on a move to migrate readers from print to digital platforms to arrest falling profits, but the jury is out on whether the company can transform fast enough to drive future earnings up.
Analysts agree that the company has very much less than two decades left - the time it took for the paper to rise from an underdog to become Malaysia’s leading English newspaper.
Can it thrive in the hyper-trendy online space as well as it has in the mainstream, and will advertisers follow?
On this front, most analysts said the company has underperformed, pointing to a near 20 percent slump in its share price last year, from which it is still striving to recover.
Its share price, which rarely strayed from the RM3-RM3.40 range in 2011-2012, slid from November onwards to an all-time low of RM2.35 on May 2 before recovering.
It is noted that The Star ’s shares were trading at RM2.85 on Thursday.
“ The Star has been too slow to react as the online media and TV have siphoned their advertising expenditures (adex) away over the last one to two years,” one industry analyst said.
The evolving and crowded Malaysian media landscape, dogged by patronage, stringent government controls, fickle reader support and pluralism, makes bank-backed equity analysts unsure about valuing The Star ’s stock.
Who can fairly measure how much of a fan base The Star really has?
Go to KiniBiz for more .
For more news and views that matter, subscribe and support independent media for only RM0.36 sen a day:Subscribe now
Keep Malaysiakini independent!
Malaysiakini will be 18 this year. That we’ve survived this long is because of you.
Your support matters. A lot. Especially those who pay RM150 annually, RM288 biennially or RM388 triennially to keep Malaysiakini independent from government influence and corporate interests. Advertising alone will not keep Malaysiakini afloat.
Together, we’ve gone far. We’ve covered three prime ministers, four general elections, five Bersih rallies, and countless scandals. But the journey continues.
Help us deliver news and views that matter to Malaysians. Help us make a difference for Malaysia.