Astro Q1 earnings down 10.8%

PETALING JAYA: Astro Malaysia Holdings Bhd, which denied knowledge of any moves for a privatisation exercise, saw net profit for the first quarter ended April 30 fall 10.77% to RM174.72 million from RM192.35 million due to higher net finance cost stemming from unfavourable unrealised forex movement arising from unhedged non-current balance sheet liabilities.
Revenue was lower by 1.1% to RM1.31 billion from RM1.32 billion due to the decrease in subscription revenue, although this was offset by higher merchandise sales, advertising and sales of programming rights.
“The group is repositioning its business with emphasis towards personalisation, mobility, interactivity and customer engagement, and is focused on executing its key strategies of digitalising the legacy businesses.
Its board of directors said this will be done via investments in technology to accelerate digital transformation; providing video streaming services via Astro Go and NJOI Now; and offering differentiated products, services and content rapidly scaling digital ventures via the group’s e-commerce platform, Go Shop, Tribe and regional live streaming platform, Tamago; and deepening strength in content verticals and building a robust innovation pipeline via collaborative partnerships with leading content players to drive revenue growth.
It is also banking on its joint venture with Grup Majalah Karangkraf Sdn Bhd to extend its regional presence among Malay language audience online and augment monetisation of content IPs across multiple platforms in the Nusantara region.
However, amid the global trend of structural change in the media industry, Astro is also expecting to encounter some revenue challenges, which is being cushioned against by revenue diversification efforts and cost optimisation initiatives.
“This year Astro will be broadcasting the 2018 FIFA World Cup, the largest sporting event globally, to customers, fans and Malaysians. We will be using content and our digital platforms to provide immersive engagement with consumers across all demographics, driving towards diversified revenue streams. On the basis of the above, the board believes the group will continue to remain cash generative and will focus on investing in our growth strategy,” it said.
Meanwhile, in a separate filing Astro clarified that it had not received any confirmation on a privatisation proposal, as news reports emerged that tycoon Ananda Krishnan was looking at privatising the company after its share price hit a record low.
“The board of Astro wishes to clarify that as far as the group is aware, after due enquiry, it has not received confirmation of any privatisation proposal,” its board of directors told the stock exchange.