Astro Malaysia sees profits fall 35%
April 1, 2019
By Chris Forrester
Astro Malaysia suffered higher financing and currency exchange charges which impacted Q4 net profits (for the 3 months to January 31st) which fell 34.87 per cent, when compared to the same period a year earlier. The pay-TV broadcaster also said it expects 2020 to be a challenging year.
The full-year picture saw declines in overall subscription revenues and which resulted in net profit falling 39.9 per cent (to RM462.92 from RM770.64). Revenue for the year also dwindled to RM5.48 billion from RM5.53 billion in FY18, mainly due to the decline in subscription and advertising revenue.
In a filing to the Kuala Lumpur Bursa Malaysia Astro stated that the increase in net finance costs was due to the unfavourable foreign-exchange movement arising from unhedged finance lease liabilities and vendor financing, and the decrease in EBITDA.
“Given the challenging operating environment, Astro is reviewing its business so that we can remain efficient and agile to serve our customers better. Our focus will remain on serving our 5.7 million Malaysian homes (77 per cent of Malaysian homes) and 23 million individuals via our pay-TV and NJOI platforms with differentiated and compelling contents,” Astro CEO Henry Tan said in a statement.