Astro Malaysia's Q1 net profit down 58% on higher costs

Astro Malaysia’s Q1 net profit down 58% on higher costs

PETALING JAYA: Astro Malaysia Holdings Bhd’s net profit fell 58.1% to RM73.84 million in its first quarter ended April 30, from RM176.2 million recorded in the corresponding quarter of the previous year, due to higher content, merchandise and staff related costs, which was offset by lower tax expenses and lower amortisation of software.

Its revenue for the period declined by 14.7% to RM1.05 billion from RM1.23 billion previously.

For the period, its board has declared a first interim dividend of 1 sen per share to be paid on July 17, amounting to approximately RM52.15 million.

According to the group’s Bursa Malaysia disclosure, its television segment’s revenue was 15.7% lower to RM920.4 million, mainly arising from a decrease in subscription and advertising revenues.

Its radio segment saw revenue for the period drop 37.5% to RM37.2 million from RM59.5 million previously as a result of lower advertising spend as companies held back their advertising and promotional spend.

Astro’s home-shopping segment revenue for the current quarter grew 14.1% to RM95.3 million from RM83.5 million previously, primarily due to higher viewership and the festive season during the quarter.

On its prospects for the year ahead, the group noted that households and businesses globally continue to face unprecedented social and economic disruption brought about by the Covid-19 pandemic.

Astro expects to face headwinds in its advertising and commercial revenue as well as elevated collection risk, and has accordingly raised provisions on receivables.

The group will pursue disciplined cost optimisation and active capital management to further strengthen its financial position

“Our businesses were impacted by lower advertising spends and restrictions in upselling and installations. With most commercial establishments not allowed to operate, we proactively introduced flexible subscription and payment arrangements,” said its CEO Henry Tan in a press release.

Astro’s chairman, Tun Zaki Azmi, pointed out that it continues to be cash generative, cost disciplined and proactive in its capital management despite the pandemic impact.

“The group has been agile in adapting to the new normal, allowing us to deepen our engagement with our customers, strengthen our value proposition and to seize opportunities for adjacencies in commerce, broadband, digital and OTT post MCO,” he said

source https://www.thesundaily.my/business/astro-malaysia-s-q1-net-profit-down-58-on-higher-costs-IX2606291