KUALA LUMPUR (June 21): Astro Malaysia Holdings Bhd's net profit for the first quarter ended April 30, 2022 (1QFY23) declined by 29.19% to RM100.02 million from RM141.25 million a year earlier, due to factors that included higher net financing costs amid unfavourable unrealised foreign exchange loss.

Earnings per share dropped to 1.92 sen from 2.71 sen. 

Finance costs rose 16.6% year-on-year (y-o-y) to RM61.2 million in 1QFY23.

According to a Bursa Malaysia filing on Tuesday (June 21), the group's quarterly revenue slid by 9.36% to RM962.09 million from RM1.06 billion following a decrease in subscription revenue and merchandise sales.

Meanwhile, Astro declared its first interim dividend of 1.25 sen per share, to be paid on July 20.

On a quarterly basis, the group's net profit tumbled by 20.99% from RM126.59 million reported for the immediate preceding quarter (4QFY22) while revenue decreased by 6.71% from RM1.03 billion in 4QFY22.

Commenting on the group's financial performance, Astro Group chief executive officer, Henry Tan, said despite the headwinds, the group remains steadfast in executing its transformation plan and streaming aggregation strategy.

"Our average revenue per user (ARPU) improved to RM97.40, as customers migrated to the new and better value packages we launched last November.

"In March, we launched Astro Fibre, our own internet service, so consumers can opt for either broadband-content bundles or stand-alone broadband. In June, we became the first in Southeast Asia to pioneer Addressable Advertising, an audience-based targeted video advertising platform across TV, Video on Demand and digital.

"Over 600k homes are already on Ultra and Ulti Boxes, which run on both satellite and broadband. Astro GO has 867k monthly active users with average weekly viewing time of over three hours. On Demand shows streamed grew 48% y-o-y to 148 million. In 1QFY23, our broadband base increased by 50% y-o-y as more customers bundled broadband with content for convenience and value," he revealed.

Tan also shared that the group will continue to invest in its transformation plans, in particular content, broadband, streaming, customer experience, data, addressable advertising and technology infrastructure to simplify its processes and most importantly, to better serve its customers.

Meanwhile, in a separate Bursa Malaysia filing, the group announced the redesignation of its independent non-executive director, Tunku Ali Redhauddin Ibni Tuanku Muhriz, to become its new chairman effective June 23.

Tunku Ali will be replacing Tun Zaki Tun Azmi, who has resigned after helming the post since 2012.

"Having served on the board for more than nine years, it is timely to pass on the chairmanship, and I congratulate Tunku Ali on his new appointment.

"I am confident with the continued support and commitment from the board and Team Astro, Astro will be able to grow from strength to strength under his leadership," Tun Zaki said.

Tunku Ali is currently the chairman of Bumi Armada Bhd and Taliworks Corp Bhd and sits on the boards of Bangkok Bank Bhd and Sun Life Malaysia Assurance Bhd.

As a senior adviser to TPG Capital, he also sits on several portfolio company boards including Pathology Asia Holdings, CVS KL, XCL Education Malaysia, and Columbia Asia, the group shared.

Tunku Ali said: "I am honoured to be appointed by the Astro board as its new chairman. I look forward to working with the board and management on the next step of Astro's journey as we continue to solidify our postion in the industry, with our customers at the core. On behalf of the board, I would like to thank Tun Zaki Tun Azmi for his leadership and contribution to the group over the years."

Shares in Astro closed 0.5 sen or 0.53% higher at 94 sen, giving it a market capitalisation of RM4.9 billion.