Astro Malaysia Holdings Bhd’s (Astro) net profit dropped 21 per cent to RM133.65 million for the second quarter (Q2) ended July 31, 2020 from RM169.34 million previously.
The decline was due to a drop in earnings before interest, taxes, depreciation and amortisation (Ebitda) and net financing costs, it said in a filing with Bursa Malaysia today.
Its Ebitda margin decreased by 1.3 per cent against the corresponding quarter, mainly due to higher merchandise costs, mitigated by lower content costs and impairment of receivables.
Revenue for the current quarter also dipped 11.8 per cent to RM1.09 billion from RM1.24 billion a year ago, mainly arising from a decrease in subscription and advertising revenues and offset by an increase in merchandise sales.
Group chief executive officer Henry Tan said operations are close to full capacity.
“Customers payment trend is also encouraging, and local productions, global live sports and on-ground events are resuming,” he said in a separate statement.
On prospects, Astro remains cautious in the second half of the financial year 2021 due to prevailing uncertainties amid the Covid-19 pandemic, structural changes in the media industry and the ongoing acts of piracy. — BERNAMA