KUALA LUMPUR (Sept 15): Astro Malaysia Holdings Bhd's net profit for the second quarter ended July 31, 2020 (2QFY21) jumped 81% to RM133.65 million, from RM73.84 million for 1QFY21, due to lower content costs and impairment of receivables, offset by higher merchandise costs, as a percentage of revenue.
Quarterly revenue also grew 3.62% to RM1.09 billion versus RM1.05 billion recorded in the preceding quarter, mainly due to increase in merchandise sales, offset by a drop in advertising revenue, the group said in its results filing with Bursa Malaysia today.
Earnings per share (EPS) stood at 2.56 sen compared with 1.42 sen in 1QFY21.
The group declared a higher dividend of 1.5 sen for 2QFY21, up half a sen from one sen per share for 1QFY21. The second interim dividend will be paid out on Oct 14, the group said in a separate bourse filing.
Commenting on the group's quarterly performance, Astro chairman Tun Zaki Azmi noted that the group saw encouraging signs of recovery in the second quarter thanks to the gradual restarting of economic activities in the country.
"Astro's balance sheet remained strong as it continued to be cash generative, cost disciplined and proactive in its capital management. Despite this, we remain prudent in view of the uncertainties arising from the pandemic," he said in a statement today.
Astro group chief executive officer Henry Tan said Astro's operations are now close to full capacity.
"Installations have resumed and we see the Astro Ultra Box continuing its growth trajectory, with over 100,000 boxes installed, up 60% over three months. Customer payment trend is also encouraging, and local productions, global live sports and on-ground events are resuming," he said.
On a year-on-year basis, Astro's net profit for 2QFY21 dropped 21.07% from RM169.34 million as revenue came in 11.76% lower from RM1.27 billion recorded in 2QFY20.
EPS for the quarter were 0.68 sen lower compared with 3.24 sen in the same quarter a year earlier.
For the six-month period ended July 31, 2020 (1HFY21), Astro's net profit came in 39.95% lower at RM207.49 million versus RM345.53 million for 1HFY20. Revenue for the period stood at RM2.14 billion versus RM2.47 billion.
Going forward, Tan said the group remains cautious in 2HFY21 due to prevailing uncertainties amid the pandemic, structural changes in the media industry and the ongoing acts of piracy.
"We are mindful of the potential impact on consumers' disposable income and sentiments when the loan moratorium ends. We will continue to support our commercial customers, who are still affected by the ongoing Recovery Movement Control Order.
"The group's agility in adapting to the new normal has allowed us to deepen our engagement with customers, strengthen our value proposition and seize opportunities for adjacencies in commerce, broadband, digital and OTT (over-the-top).
"We are committed to be the entertainment destination for Malaysians and will drive digital, aggregate more streaming OTT services, push broadband bundles, produce more winning and compelling content whilst simplifying our products, packages and processes," he added.
Shares in Astro settled 3.5 sen or 4.55% higher at 80.5 sen apiece today, with 3.31 million units done. This gives the counter a market capitalisation of RM4.2 billion.