KUALA LUMPUR (Dec 3): Astro Malaysia Holdings Bhd's net profit for the third quarter ended Oct 31, 2020 (3QFY21) rose 23.11% to RM164.53 million or 3.5 sen per share, from RM133.65 million or 2.56 sen in the immediate preceding quarter, thanks to improved margin and lower net finance costs.

The group's revenue for 3QFY21 grew 1.47% quarter-on-quarter (q-o-q) to RM1.11 billion, from RM1.09 billion, mainly due to increases in advertising revenue and sales of programme rights, offset by drop in merchandise sales and subscription revenue, its filing with Bursa Malaysia showed.

The group declared a third interim single-tier dividend of 1.5 sen per ordinary share in respect of the financial year ending Jan 31, 2021 amounting to approximately RM78.22 million, to be paid on Dec 30. The entitlement date for the dividend payment is Dec 18.

The group said its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin for the quarter increased by 2.2% mainly due to lower merchandise costs and licence, copyright and royalty fees, offset by higher impairment of receivables, as a percentage of revenue.

"The increase in net profit was in tandem with the increase in EBITDA as mentioned above and lower net finance costs, offset by higher tax expenses," it said.

Its television EBITDA increased by 3.1% to RM369.9 million, mainly due to higher revenue, lower licence, copyright and royalty fees, offset by higher content costs and impairment of receivables.

Its radio division EBITDA also jumped 539% q-o-q to RM29.4 million, driven by revenue growth and ongoing cost reduction measures undertaken by the management.

Its home shopping EBITDA, however, reduced by 47% to RM5.2 million, primarily due to lower revenue during the quarter.

On a year-on-year basis, the group's net profit slipped 3.7% from RM170.85 million, while its revenue decreased by 8.91% from RM1.22 billion.

For the cumulative nine months ended Oct 31, 2020, the group's net profit dropped by 27.96% to RM372.02 million or 7.13 sen per share, from RM516.38 million or 9.9 sen per share. Its revenue for the period also declined 11.81% to RM3.25 billion, from RM3.69 billion.

The group remains cautious about the potential impact of the recently reimposed Conditional Movement Control Order (CMCO), which might be extended depending on external circumstances.

It said further extension of CMCO may impact advertising and commercial revenue, amidst structural changes in the media industry and ongoing acts of piracy.

"The group's agility in adapting to the new normal has allowed us to deepen our engagement with our customers, strengthen our value proposition and seize opportunities for adjacencies in commerce, broadband, digital and over-the-top (OTT).

"The group is committed to be the entertainment destination for Malaysians, by aggregating more streaming OTT services amid the acceleration in digital, pushing broadband bundles, producing more winning and compelling content and simplifying our products, packages and processes.

"The group will continue to cost optimise, reprioritise capex and actively manage its capital to further strengthen its balance sheet," it said.

Astro closed 5.5 sen or 6.67% higher at 88 sen, valuing the group at RM4.59 billion.