Astro 1Q net profit up despite weaker revenue
Astro

By SULHI KHALID / pic by BLOOMBERG 

Astro Holdings Bhds’ cost optimisation measures on content and operating expenses saw it translate into a  1% year-on-year (YoY) rise in earnings to RM176 million for the first quarter ended April 30, 2019 (1Q20).

In a filing to Bursa Malaysia yesterday, the pay-television service provider’s revenue fell 5.8% YoY to RM76.5 million due to decrease in subscription revenue.

CEO  Henry Tan stated the company continue to entertain and engage with 5.7 million households and 23 million individuals with signature vernacular and premium content as well as the biggest live sports on its Pay-TV and NJOI platforms.

The company has entered into partnership with iQiyi of China and HBO Asia for HBO GO.

“We are excited about the opportunity that iQIYI presents in technology leadership and content innovation. 

“This partnership enables us both to leverage on the strength of our brands and skill sets to extend our reach in a content world which is increasingly personal and digital,” Tan said in a statement yesterday.

The group’s television segment posted a 5.9% fall in revenue to RM68.2 million as subscription revenue declined.

The radio segment reported lower revenue due to an unfavourable operating environment leading to lower client advertising spend.

Astro’s Home-Shopping segment’s revenue was affected by subdued consumer sentiment, resulting in purchase of lower value items by customers. 

Moving forward, the group remain committed on strengthening its core PayTV and NJOI businesses by redefining customer value propositions and refreshing contents. 

“By leveraging on our customer base, we will build new revenue adjacencies in broadband, OTT, regional content co-production, data driven marketing network and commerce, as well as elevating customer service to drive customer engagement,” the company said. 

The group declared its first interim dividend of two sen per share, to be paid on July 25, 2019.

Astro’s shares closed six sen higher at RM1.51, valuing the company at RM7.87 billion.