Astro sec­ond quar­ter net profit down 8.6%

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Astro Malaysia Hold­ings Bhd’s net profit for the sec­ond quar­ter ended July 31, 2016 de­creased by 8.6% to RM125.43 mil­lion from RM137.24 mil­lion a year ago mainly due to lower sub­scrip­tion rev­enue and higher con­tent costs, par­tic­u­larly EURO 2016 and the im­pact of weak­en­ing ring­git.

Rev­enue was up 4.3% at RM1.43 bil­lion from RM1.37 bil­lion in the pre­vi­ous cor­re­spond­ing quar­ter due mainly to an in­crease in ad­ver­tis­ing, home-shop­ping and other rev­enue.

The board has de­clared a sec­ond in­terim div­i­dend of 3 sen per share.

Astro group CEO Datuk Ro­hana Rozhan said it is now serv­ing 5 mil­lion or 69% of Malaysian house­holds (3.5 mil­lion pay-TV and 1.5 mil­lion NJOI) with growth pri­mar­ily driven by its sub­scrip­tion-free TV ser­vice, NJOI.

“We will fo­cus on get­ting to know our cus­tomers bet­ter by de­ploy­ing data an­a­lyt­ics and in­creas­ing our mar­ket­ing ef­forts to raise cus­tomer aware­ness. We now of­fer in­clud­ing On De­mand, Down­load to Go, mo­bile broad­band plans, seam­less ac­cess to mul­ti­ple de­vices and more same day date con­tent, among oth­ers. Viewership has in­creased with real-time, sec­ond-screen en­gage­ment via Astro On The Go, con­tent mo­bile apps and through in­te­grat­ing so­cial me­dia onto our con­tent de­liv­ery plat­forms,” she said in a state­ment.

Con­tent costs have ben­e­fited from rene­go­ti­a­tion of con­tracts with key con­tent sup­pli­ers, re­sult­ing in sig­nif­i­cant sav­ings and in­creased new me­dia rights. These have helped in mit­i­gat­ing the im­pact of cur­rency de­pre­ci­a­tion and a dual sport­ing year.

For the six months pe­riod, net profit in­creased by 7.2% to RM327.60 mil­lion from RM305.54 mil­lion a year ago mainly due to lower de­pre­ci­a­tion of prop­erty, plant and equip­ment and lower net fi­nance cost.

Rev­enue at RM2.79 bil­lion was higher by 3.4% com­pared with RM2.70 bil­lion in the pre­vi­ous year.

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