PETALING JAYA: Astro Malaysia Holdings Bhd’s net profit increased slightly by 0.8% to RM176.2 million for the first quarter ended April 30, 2019 against RM174.73 million in the previous corresponding period, thanks to lower net finance costs and lower tax expenses.
Its revenue, however, slipped 5.8% to RM1.23 billion from RM1.31 billion, due to a decrease in subscription revenue.
The group has proposed to declare an interim dividend of 2 sen per share for the quarter under review.
Astro told Bursa Malaysia that its digital advertising expenditure (adex) grew 13% to RM9 million and achieved total adex of RM145 million.
While total adex declined 4%, the group said it outperformed the industry adex, which saw a 9% contraction.
Astro’s television earnings before interest, taxes, depreciation and amortisation (ebitda) decreased 3.1% due to lower revenue and higher impairment of receivables, offset by lower content costs and marketing and distribution costs.
Radio ebitda declined 10.3% to RM29.7 million on the back of an unfavourable operating environment leading to lower client advertising spend.
Looking ahead, Astro said the market is increasingly challenging, with ongoing structural changes in the global content and media industry and threat of piracy.
However, the group noted that it is focused on strengthening its core Pay TV and NJOI businesses by elevating its customer service, redefining customer value propositions and refreshing its content.
“By leveraging on its TV, OTT(over-the-top) radio, digital, events, talents and its customer base, the company is building new revenue adjacencies in broadband, OTT, exporting content, data driven marketing network and commerce to drive stronger customer engagement.
