Astro revenue fell 11.6% during MCO period

KUALA LUMPUR, 16 Sept 2020:

Astro Malaysia Holdings Bhd’s net profit dropped 21% to RM133.65 million for the second quarter ended 31 July 2020, from RM169.34 million previously.

The decline was due to a drop in earnings before interest, taxes, depreciation and amortisation (EBITDA) and net financing costs, it said in a filing with Bursa Malaysia yesterday.

The satellite-cable television services provider’s EBITDA margin decreased by 1.3% against the corresponding quarter – mainly due to higher merchandise costs, mitigated by lower content costs and impairment of receivables.

Revenue for the current quarter also dipped 11.8% to RM1.09 billion from RM1.24 billion a year ago, mainly arising from a decrease in subscription and advertising revenues and offset by an increase in merchandise sales.

Group chief executive officer Henry Tan said operations are close to full capacity during this quarter, when Malaysians were largely stuck at home due to the Movement Control Order (MCO) and subsequent relaxations under the Conditional MCO and Recovery MCO.

“Installations have resumed and we see the Astro Ultra Box continuing its growth trajectory, with over 100,000 boxes installed, up 60% over three months.

“Customers payment trend is also encouraging, and local productions, global live sports and on-ground events are resuming,” he said in a separate statement.

On prospects, Astro remains cautious in the second half of the financial year 2021 due to prevailing uncertainties amid the Covid-19 pandemic, structural changes in the media industry and the ongoing acts of piracy.

– Bernama