Food
Astro Malaysia Holdings Bhd’s net profit for the second quarter ended July 31 fell 93% to RM16.58 million from RM246.34 million a year ago due to an increase in FIFA World Cup content, merchandise sales and higher net finance costs.
The decrease in earnings before interest, tax, depreciation and amortisation (ebitda) was mainly due to higher content costs from FIFA World Cup and merchandise sales, while higher net finance cost was mainly due to unfavourable unrealised forex movement arising from unhedged finance lease liabilities and vendor financing and increase in interest expenses from borrowings.
Revenue for the quarter of RM1.42 billion was marginally lower by 0.2% mainly due to a decrease in subscription and advertising revenue.
For the six months period, net profit plunged 57% to RM191.31 million from RM442.17 million mainly a year ago due to decrease in ebitda and increase in net finance costs.
Revenue for the current period of RM2.73 billion was lower by 0.7% against corresponding period of RM2.75 billion, mainly due to a decrease in subscription and advertising revenue.
The board of directors declared a second interim single-tier dividend of 2.5 sen per ordinary share in respect of the financial year ending Jan 31, 2019 amounting to RM130.35 million.
Astro chairman Tun Zaki Azmi said Astro continues to be cash generative, cost disciplined and proactive in its capital management whilst navigating through a challenging market and competitive media environment.
Astro CEO Henry Tan said it experienced increased content costs for the 2018 FIFA World Cup. In addition, financial results were affected by the reduced need to advertise during the tax holiday period from June 1 to Aug 31, 2018 and the depreciating ringgit.
Nevertheless, it continues to have stable revenues across TV and radio with diversification from digital platforms, e-commerce, licensing income and theatrical sales.
“Going forward, we expect the group’s second half performance to improve and we will remain focused on key business drivers. Astro is committed to improving customer experience beginning with a new interface for premium customers on TV and Astro GO allowing for a seamless viewing experience across all screens and the introduction of 4K Ultra HD offerings,” said Tan.
