Astro Malaysia’s net profit declined to RM126.6m

by SHAFIQQUL ALIFF / pic TMR FILE 

ASTRO Malaysia Holdings Bhd net profit fell to RM126.6 million in the fourth quarter of 2022 (4Q22) ended on Jan 31, 2022, compared to the previous year of RM167.8 due to higher net financing costs, offset by lower tax expenses and depreciation of right-of-use assets. 

While revenue for the quarter was at RM1.03 billion compared to RM1.11 billion posted a year ago due to a decrease in subscription and merchandise sales, offset by an increase in advertising revenue. 

Its TV revenue for the current quarter of RM907.9 million was lower by RM44.3 million or 4.7% against the corresponding quarter of RM952.2m. 

TV Ebitda decreased by RM79.9 million or 21.8% against the corresponding quarter. “This is due to a decrease in revenue, as mentioned above, higher licence, copyright and royalty fees, broadband cost and marketing and distribution expenses,” Astro said in a filing to Bursa Malaysia yesterday.

While its radio segment revenue for the current quarter was higher by RM10.4 million or 22.6% compared to the corresponding quarter benefitting from higher advertising spend in line with earlier Chinese New Year Festival.

Its home-shopping’s revenue for the current quarter reduced to RM66.9 million compared to the corresponding quarter of RM110.5 million, primarily due to subdued consumer sentiment, more cautious spending and floods affecting sales and delivery. 

“In addition, the easing up of restrictions imposed by Movement Control Order have resulted in customers frequenting physical stores following months of restrictions,” the media group said. 

The board has declared a fourth interim dividend of 1.5 sen per share and proposed a final dividend of 0.75 sen per share, with a full-year dividend of 6.75 sen per share. 

Astro CEO Henry Tan said customers are responding well to Astro’s bundle services. “We offer better-value bundles in a single bill by providing the best global streaming services, in combination with our flagship shows and live sports seamlessly in one place. Customers are responding well to these new bundles, and we are ahead of expectations in terms of current subscribers migrating to the new packs and recontracting.

“We now offer three distinct services for Malaysians — Astro; our premium Pay-TV brand, NJOI; our prepaid option and sooka; our standalone freemium streaming service catering to millionlennials with a mobillione-first lifestyle,” he said in a separate statement. 

He stated that the group continues to invest in its transformation plans, in particular content, broadband, streaming, customer experience, data, addressable advertising and technology infrastructure, to simplify their processes and most importantly to better serve their customers.