KUALA LUMPUR (June 16): Astro Malaysia Holdings Bhd saw its net profit jump 31.1% to RM168.3 million or 3.23 sen per share for the first financial quarter ended April 30, 2015 (1QFY16) from RM128.33 million or 2.47 sen per share a year ago, due primarily to higher earnings before interest, taxes, depreciation, and amortisation (ebitda) and lower depreciation expenses.

In a filing with Bursa Malaysia today, the country's leading pay-television operator attributed the improved net profit in 1QFY16 to the increase in ebitda of RM31.3 million, decrease in depreciation of set-top boxes of RM22.3 million and amortisation of software of RM4.4 million and decrease in net finance costs of RM7 million, which was offset by an increase in tax expenses of RM24.4 million.

Revenue grew 6.1% to RM1.33 billion from RM1.25 billion in 1QFY15, mainly due to the increase in subscription, advertising and other revenue of RM33.4 million, RM14 million and RM28.8 million respectively. 

The group also declared a first interim dividend of 2.75 sen per share for the financial year ending Jan 31, 2016 (FY16), payable on July 15, 2015.

Astro (fundamental: 1.1; valuation: 2.1) also noted that its ebitda margin increased by 0.3% against 1QFY15 mainly due to lower installation costs, lower selling and distribution expenses as a percentage of revenue.

However, the increase was offset by higher cost of merchandise sales and impairment of other investment. 

Going forward, Astro believes that it will remain cash generative and be able to invest in its growth strategy, while maintaining a progressive dividend policy, despite the expectations of a more challenging economic outlook and the effects of current trends in consumer sentiments.

Shares in Astro closed two sen or 0.67% higher at RM3.01 today, for a market capitalisation of RM15.55 billion. 

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)