PETALING JAYA: Astro Malaysia Holdings Bhd’s net profit for the fourth quarter ended Jan 31 decreased 35% to RM118.4 million from RM181.79 million a year ago mainly due to higher net finance costs.
In a filing with Bursa Malaysia, the group attributed the higher net finance costs to unfavourable unrealised forex movement arising from unhedged finance lease liabilities and vendor financing, and a decrease in earnings before interest, tax, depreciation and amortisation.
Revenue for the current quarter of RM1.3 billion was lower by 1.5% against corresponding quarter of RM1.39 billion, mainly due to a decrease in subscription revenue because of lower package take-up.
For the full year period, Astro’s net profit fell 40% to RM462.92 million from RM770.64 million a year ago resulting from higher sports content cost, one-off employee separation scheme costs and unrealised forex losses on finance lease liabilities.
Revenue for the year of RM5.48 billion was marginally lower against corresponding year of RM5.53 billion mainly due to a decrease in subscription and advertising revenue.
The decrease in subscription revenue was mainly due to lower package take-up and the decrease in advertising revenue was due to a slowing advertising market.
It declared a fourth interim dividend of 1.5 sen per share in respect of the financial year ending Jan 31 (FY19), while total dividend declared for FY19 is 9 sen.
Astro chairman Tun Zaki Azmi said in a competitive media landscape, Astro continues to be cash generative, cost disciplined and proactive in its capital management.
Astro CEO Henry Tan said given the challenging operating environment, Astro is reviewing its business so that it remains efficient and agile to serve its customers better.
“Our focus will remain on serving our 5.7 million Malaysian homes and 23 million individuals via our Pay TV and NJOI platforms with differentiated and compelling content. By leveraging on our customer base and our ability to reach and engage on television, radio and digital platforms, revenue adjacencies such as commerce, adex, content licensing and theatrical sales are showing promising growth trajectory,” he said.
Astro anticipates FY20 to be a challenging year and aims to strengthen its customer value proposition via initiatives such as broadband bundles, seamless viewing across all screens, better customer service and deeper engagement with fans.
Source: The Sun Daily