Astro Q3 net profit falls to RM164.53m

In a filing with Bursa Malaysia today, the company said the lower revenue was mainly due to a decrease in subscription and advertising revenue impacted by the Covid-19 pandemic but which was offset by an increase in merchandise sales. — Reuters pic
In a filing with Bursa Malaysia today, the company said the lower revenue was mainly due to a decrease in subscription and advertising revenue impacted by the Covid-19 pandemic but which was offset by an increase in merchandise sales. — Reuters pic
KUALA LUMPUR, Dec 3 — Astro Malaysia Holding’s Bhd’s net profit for the third quarter (Q3) ended September 30, 2020, fell to RM164.53 million from RM170.85 million in the same quarter last year.

Revenue slipped 8.9 per cent 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 impacted by the Covid-19 pandemic but which was offset by an increase in merchandise sales.

Net profit decreased by RM3.5 million or 2.1 per cent 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 per cent 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 per cent 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 per cent 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 extension of the CMCO may impact advertising and commercial revenue, amidst structural changes in the media industry and ongoing acts of piracy.

The group will continue to cost optimise, reprioritise capital expenditure, and actively manage its capital to further strengthen its balance sheet, it added. — Bernama

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