Astro records viewing rate, broadcasts over 3,000 hours of PSA throughout MCO

Astro Malaysia Holdings Berhad (Astro) recorded viewing rate and acted swiftly besides being pro-active in providing action plans supporting the country, customer and community situations during the implementation of the Movement Control Order (MCO).

According to Astro Group Chief Executive Officer Henry Tan, Astro strives to keep Malaysians informed and entertained by offering complimentary access to Astro, NJOI and Astro GO channels.

"At the same time, we provide students with educational and learning content.

"As one of the nation's most important services, Astro assists in broadcasting more than 3,000 hours of Public Service Announcements (PSAs), provides the latest news and restricts the spread of fake news across all TV, radio and digital platforms," he said in a statement on Thursday.

With the closure of cinemas nationwide during the MCO, Astro has also assisted filmmakers and film industry players by offering a platform for their films to be broadcast live from the home of viewers through Astro First.

According to financial reports for the first quarter of the financial year ending January 31, 2021, Astro's revenue recorded a -15% decline year-on-year to RM1.1 billion.

Depreciation and amortization (EBITDA) also declined -26% year-on-year to RM330 million.

Profit After Tax And Minority Interest (PATAMI) also saw a decrease of -58% year-on-year to RM74 million and PATAMI Denormalization declined -42% year-on-year to RM107 million.

Astro also announced the first interim dividend of 1 sen per share, in addition to the Average Revenue Per Unit (ARPU) generated from pay TV service ('Pay TV') remaining modest at RM99.1.

Go Shop's revenue grew 14% year-on-year to RM95 million.

Henry said the company's business was affected by lower advertising spending and restrictions in operations pertaining to upselling and installations.

"While most commercial organizations are not allowed to operate, we took proactive steps by introducing more flexible subscription and payment methods.

"The company's revenue declined by RM182 million year-on-year, due to the decline in advertising and subscription aspects, and the implementation of a more prudent revenue recognition approach," he added.

The Group also took reasonable steps by providing for a doubtful debt and at the same time actively communicating with the affected customers to ensure payment could be made on a regular basis.

"Although operating expenses are seen to be lower on average driven by cost savings from contents, the company's earnings are still affected by forex losses," he said.

Meanwhile, Astro Chairman Tun Zaki Azmi said as the country's essential service provider, Astro continued to operate throughout the phase of the MCO.

"By activating Business Continuity Planning, we remain focused on providing uninterrupted service to all our customers. At the same time, we remain committed to ensuring the health and safety of our employees," he said.

Despite the impact of the COVID-19 pandemic, Astro continues to generate cash income, successfully controlling financial costs in a disciplined way and was always proactive from the aspect of corporate capital management.

"The company's balance sheet remains strong despite the current economic uncertainty. Therefore, the Board has announced the first interim dividend of 1 sen per share," he added.