Astro's Q3 net profit falls

KUALA LUMPUR – Astro Malaysia Holdings Bhd’s net profit for the third quarter (Q3) fell to RM164.53 million from RM170.85 million in the same quarter last year.

Revenue slipped 8.9% to RM1.11 billion from RM1.22 billion a year ago.

In a filing with Bursa Malaysia today, the company said the lower revenue was mainly due to a decrease in subscription and advertising revenue, adding that this was due to the Covid-19 pandemic but which was offset by an increase in merchandise sales.

Net profit decreased by RM3.5 million or 2.1% compared with the corresponding quarter, offset by lower net financing costs, depreciation of property, plant and equipment and tax expenses, it said.

As for the television segment, it said the revenue for the current quarter of RM946.1 million was lower by RM104.4 million or 9.9% against the corresponding quarter of

RM1.05 billion, mainly arising from a decrease in subscription and advertising revenue.

However, the decrease in profit was mitigated by lower content costs and licence, copyright and royalty fees.

Radio’s results for the current quarter, it said continues to be impacted by slow economic activity caused by the Covid-19 pandemic, with revenue lower by 30.1% compared with the same quarter last year.

“Cost reduction measures were taken by management which helped reduce operating costs to mitigate the revenue impact,” it said.

Meanwhile, its home-shopping segment revenue for the current quarter grew by RM17.6 million or 18.9% to close at RM110.7 million compared with the corresponding quarter of RM93.1 million, primarily due to consumers’ shift to online shopping following the Movement Control Order (MCO).

Moving forward, Astro said it remained cautious about the potential impact of the recently reimposed conditional MCO which might be extended depending on external circumstances.

It fears further extending the CMCO may impact advertising and commercial revenue, amidst structural changes in the media industry as well as piracy.

The group said it will continue to optimise costs, re-prioritise capital expenditure, and actively manage its capital to further strengthen its balance sheet. – Bernama, December 3, 2020.