Astro FY19 profit declines on higher sports content cost, VSS and forex losses

Astro group CEO Datuk Rohana Rozhan said in the statement:

KUALA LUMPUR:  Astro Malaysia Holdings Bhd said it is reviewing its business after the pay TV operator reported its lowest annual net profit in five years.

The media company expects financial year ending Jan 31, 2020 (FY20) to be another challenging year.

Astro, in a statement today, said net profit in the fourth quarter ended Jan 31, 2019 (Q4FY19) fell 35% to RM118.4mil as revenue remained steady at RM1.368bil.

Full year earnings stood at RM462.9mil compared with RM770.6mil made a year earlier.

The company has declared a fourth interim dividend of 1.5 sen a share, that lifted its full year payout to 9 sen a share.

In FY18, total payout was 12.5 sen a share.

Astro said its pay TV average revenue per user (ARPU), a key measure of its income, was steady at RM99.9 in FY19, but earnings was affected by higher sports content cost, one-off employee separation scheme costs and unrealised forex losses on finance lease liabilities.

“Given the challenging operating environment, Astro is reviewing its business so that we remain efficient and agile to serve our customers better," its chief executive officer Henry Tan said.

"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," he said.

As part of its revenue diversification, Tan said the group continues to leverage on its customer base to offer targeted marketing and advertising solutions enabled by data and analytics, to drive advertising and commerce revenue

"Revenue adjacencies such as commerce, adex, content licensing and theatrical sales are showing promising growth trajectory,” he said.




Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

NCCIM urges govt to consider alternative measures on electricity surcharge hike
Ringgit ends slightly higher versus greenback after less hawkish remarks by Fed chairman
YGL Convergence's auditor resigns amid disagreement over fees
Ecomate seeks to transfer listing to Main Market
Crescendo buys 109.86-acres land in Johor for RM67.55mil
BAT Malaysia is optimistic on FY23
Downtrend continues on Bursa Malaysia
MAG implements a more targeted operating model, appoints new senior leadership team
Perodua January sales up 43.5% year-on-year
Hotels, retailers call for electricity tariffs moratorium

Others Also Read