ASTRO Malaysia Holdings Bhd posted an increase in its net profit by 17.3% to RM138.92 mil for the fourth quarter ended Jan 31, 2020 (4QFY20), from RM118.4 mil in the previous year’s corresponding quarter.
In a Bursa Malaysia filing on March 25, the company said its earnings per share rose to 2.66 sen from 2.27 sen.
However, its quarterly revenue fell 10.3% to RM1.23 bil from RM1.37 bil a year ago.
The company also declared an interim dividend of 1.5 sen per share, to be paid on April 24.
The increase in net profit for the quarter was also due to lower amortisation of software and amortisation of event licence rights, offset by higher tax expenses.
The group said it saw better earnings before interest, tax, depreciation and amortisation (Ebitda) margin during the quarter, amid lower staff-related costs arising from the separation scheme payments in the corresponding quarter, although partly offset by higher licence, copyright and royalty fees and marketing and distribution expenses.
“Despite headwinds in the global economic environment and a challenging media landscape in FY20, Astro continues to be cash-generative, cost-disciplined and proactive in its capital management.
“Amid the Covid-19 pandemic, we have decided to take a prudent approach by moderating a fourth interim dividend to 1.5 sen per share. Total dividend declared in FY20 amounts to 7.5 sen, equating to a 60% dividend payout ratio,” said Chairman Tun Zaki Azmi.
He said this represents a departure from Astro’s dividend policy of paying out at least 75% of consolidated profits.
Given the current heightened uncertainty, the company believes this to be the best course of action to conserve liquidity and strengthen its balance sheet.
Group CEO Henry Tan said the company’s financial results remain resilient amid a challenging operating environment and the threat of piracy.
“We achieved profit after tax and minority interests (PATAMI) growth by optimising cost and strengthening our position as the entertainment destination and gateway to Malaysian homes through our Pay-TV, NJOI, Commerce and Broadband propositions.”
The counter closed 0.6% lower at 83 sen, giving it a market capitalisation of RM4.33 bil on March 25. – March 25, 2020
