Astro’s Q1 net profit declines to RM173.9 mil

Astro Malaysia Holdings Bhd’s. (Reuters pic)

KUALA LUMPUR: Astro Malaysia Holdings Bhd’s net profit for the first quarter ended April 30, 2018 declined to RM173.87 million from RM192.35 million recorded in the same period last year.

Revenue eased to RM1.31 billion from RM1.32 billion previously due to a decrease in subscription and advertising revenue, Astro said in a filing to Bursa Malaysia today.

“The decrease in subscription revenue was mainly due to lower package take-up and the decrease in advertising revenue was due to a slowing advertising market and the preceding quarter had benefited from year-end school holidays,” it said.

It said the decrease in net profit, on the other hand, was mainly due to higher net finance costs driven by unfavourable unrealised foreign exchange (forex) movements arising from unhedged non-current balance sheet liabilities comprising finance lease liabilities and vendor financing.

On prospects, Astro said it expects to encounter some revenue challenges amid the global trend of structural change in the media industry, and it is cushioning these challenges with revenue diversification efforts and cost optimisation initiatives.

The company said it would also be using content and its digital platforms to provide immersive engagement with consumers across all demographics, driving towards diversified revenue streams.

On this basis, Astro said it would continue to remain cash generative and would focus on investing in growth strategy.