2 weeks Ago
PETALING JAYA: Astro Malaysia Holdings Bhd saw its net profit for its second quarter ended July 31, 2024 more than double year-on-year (y-o-y) despite a continued challenging outlook. The pay-TV operator's net profit rose to RM54.7mil despite quarterly revenue declining by 6% y-o-y to RM787.
3mil due to a reduction in subscription and advertising revenues. Net profit had seen a y-o-y jump on lower net financing costs that was driven by favourable unrealised foreign exchange arising from unhedged lease liabilities and lower amortisation of intangible assets. These gains were offset by lower earnings before interest, taxes, depreciation and amortisation and a higher tax expense, it said in its Bursa filing.
"A sustained strengthening of the ringgit would help mitigate some of the US dollar-based cost pressures over the medium-term. We continue to maintain a cautious outlook, carefully monitoring business conditions and ensuring effective cost discipline," Astro said. In its statement, Astro also noted that its revenue rose 2% quarter-on-quarter (q-o-q) despite a challenging advertising environment due mainly to higher subscription revenue from major sports events and demand for its broadband services.
Advertising expenditures fell by 19% q-o-q to RM70mil due to external factors, it said. "Excluding unrealised foreign exchange gains from transponder lease liabilities, normalised net profit stood at RM27mil; a 10% improvement on the previous quarter. Furthermore, cash generation remained robust, with free cash flow up by 52% to RM171mil q-o-q," the group said.
Moving forward, Astro wants to aggressively push to become Malaysia’s No.1 entertainment and streaming destination. It will capitalise on local content with high-quality production and fresh storytelling with Astro Originals, signatures and movies.
Astro said it would also like to create more value for customers by increasing the volume and diversity of content in lower tiers and reducing entry pricing for Astro and Sooka products, to grow its subscriber base. The group is planning to launch three streamlined TV packs in the future for entry-level viewers, sports fans and all-access seekers. "We also aim to increase the uptake of our adjacent businesses: Sooka, Astro Fibre, Enterprise and Addressable Advertising, targeting both current and new market segments with increased value and flexibility and transform legacy cost structures," it said.
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