Astro's FY20 net profit rises to RM655.3m

Astro Malaysia Holdings Bhd's net profit in the financial year ended Jan 31, 2020 (FY20) rose to RM655.30 million from RM462.92 million in FY19.

Revenue, however, fell 10.4 per cent to RM4.91 billion from RM5.48 billion previously, mainly due to a decrease in subscription revenue, licensing income, advertising revenue, and merchandise sales, it said in a filing with Bursa Malaysia today.

Chairman Tun Zaki Azmi said Astro continues to be cash generative, cost disciplined and proactive in its capital management, despite headwinds in the global economic environment and a challenging media landscape in FY20.

"Amid the COVID-19 pandemic, the board has decided to take a prudent approach by moderating a fourth interim dividend to 1.5 sen per share, while the total dividend declared in FY20 amounts to 7.5 sen, equating to a 60 per cent dividend payout ratio," he said.

Group chief executive officer Henry Tan said the group's financial results remained resilient amid a challenging operating environment and the threat of piracy.

"We achieved profit after tax and minority interests 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 Ultra Box, Astro's latest 4K UHD decoder with cloud recording is well-received with over 45,000 orders since its launch," he said.

Tan said Astro's stable financials enable the group to pivot its business to capture new digital opportunities in over-the-top video streaming, radio and commerce.

"With three exclusive streaming services - Astro GO, HBO GO and iQIYI, we have the largest customer base for video streaming services in Malaysia, with over 2.6 million registered users," he added.

On outlook, Tan said Astro will continue to broadcast as usual during the movement control order and will also activate its business continuity plans and ensure the safety of employees.

"Our teams are currently split across different sites with a significant majority working from home.

"We at Astro are doing our part to keep Malaysians informed and entertained through these trying times," he said.

-- BERNAMA