Astro's Q1 net profit slides 3.1%

KUALA LUMPUR: Astro Malaysia Holdings Bhd recorded a net profit of RM195.8mil for the first quarter of FY18, a marginal drop of 3.1% from a year ago on the back of lower Ebitda and an increase in net finance costs.

The group said this was, however, offset by lower depreciation of property, plant and equipment. 

“Higher net finance cost was due to lower unrealised forex gain arising from unhedged non-current balance sheet liabilities comprising, finance lease liabilities and vendor financing,” it said in a filing with the stock exchange on Wednesday. 

Revenue for the quarter ended April 30, 2017, came in at RM1.32bil, also marginally lower by 2.7%.

The group said this was attributed to a decrease in licensing, subscription and advertising revenue. 

“The decrease in licensing revenue was due to loss of content recovery for sports channel. 

“The decrease in subscription revenue was mainly due to lower package take-up,” it said.

It also cited lower advertising revenue in the current quarter owing to Chinese New Year advertisement spending recorded in the corresponding quarter. 

Ebitda margin decreased by 0.3% from a year ago mainly due to the higher proportion of content costs against revenue.

On its prospects for the year, the group said it was cautiously optimistic, despite relatively subdued consumer sentiment. 

“As the group’s operating environment faces disruption, the group is re-positioning its business with emphasis towards personalisation, mobility and interactivity with customers, focusing on executing its key strategies,” it said.

Moving forward, it said the board expects that the group will remain cash generative and will focus on investing in its growth strategy.