Home / Business & Finance / Astro’s Q2 net profit surges 920 pct

Astro’s Q2 net profit surges 920 pct

KUALA LUMPUR, Astro Malaysia Holdings (Astro) Bhd’s net profit surged 920 per cent to RM169.34 million in the second quarter ended July 31, 2019, compared to RM16.58 million achieved in the corresponding period last year.

This positive result was underpinned by cost discipline measures, the satellite television and radio operator said in a filing with Bursa Malaysia today.

Revenue, however, slides to RM1.24 billion from RM1.42 billion previously, due to a decrease in subscription revenue and licensing income.

Chairman Tun Zaki Azmi said: In a competitive media landscape, Astro remains highly cash generative, cost disciplined and proactive in its capital management. The Board is pleased to declare a second interim dividend of 2 sen per share.

Meanwhile, chief executive officer Henry Tan said Astro continues to deliver strong profit after tax and minority interest (PATAMI) with rigorous cost discipline to optimise content spend and operating expenses.

“Concurrently, we are putting in place building blocks for new revenue adjacencies, specifically in broadband and content bundles with Maxis and in over the top (OTT) through our strategic partnerships with China’s video streaming platform iQIYI and HBO Asia, with more partnerships in the coming months, he added.

Astro continues to entertain and engage with 5.7 million or 76 per cent of Malaysian TV households with its signature vernacular and premium content as well as the biggest live sports on Pay-TV and NJOI platforms.

While Astro’s total advertisement expenditure (Adex) in the first half of financial year ending Jan 31, 2020, declined by 3 per cent to RM302 million, it nevertheless outperformed industry Adex, which saw a 5 per cent contraction.

On the outlook, the company said the market remains challenging with structural changes in the global content, media and advertising industries, including the threat of piracy.

“Astro’s focus is to strengthen its core Pay-TV and NJOI businesses by redefining customer value propositions, elevating customer service and refreshing content. The company will leverage on its customer base to build new revenue adjacencies in broadband, OTT, digital and commerce. Cost optimisation efforts will continue,” it said.

Source: BERNAMA (News Agency)

Check Also

Penang aims to lure more business events from UK

GEORGE TOWN, The state government aims to position Penang as a preferred destination for organisers from the United Kingdom (UK) to hold business events over the long term, state Exco for Tourism, Arts, Culture and Heritage, Yeoh Soon Hin said today.He...