KUALA LUMPUR: Astro Malaysia Holdings Bhd's net profit plunged 85.8 per cent year-on-year to RM36.88 million in its financial year ended Jan 31, 2024 (FY24) from RM259.04 million in FY23, dragged by lower pre-tax earnings and higher net finance costs.
The higher net finance costs resulted from unfavourable unrealised forex loss arising from unhedged lease liabilities.
This was offset by lower impairment and amortisation of intangible assets, depreciation of property, plant and equipment and tax expenses.
Group revenue slipped 7.4 per cent to RM3.34 billion from RM3.62 billion the previous year due to lower subscription revenue, advertising revenue, sales of programming rights and rental income.
For the fourth quarter, the company's net profit dropped to RM44.38 million versus RM54.75 million in the same period the previous year. Revenue for the quarter under review slid to RM819.85 million from RM949.26 million a year ago.
Astro noted that its Ultra and Ulti Boxes installations grew 22 per cent YoY.
Revenue for its television segment dropped 7.9 per cent to RM3.16 billion from RM3.42 billion a year ago.
Radio's revenue for the current year was marginally lower by RM4.4 million or 2.3 per cent while gome-shopping's revenue for the current year reduced by RM89.7 million or 48.9 per cent to close at RM93.6 million compared with the corresponding year of RM183.3 million.
As at Jan 31 this year, the group had total assets of RM5.66 billion against RM5.7 billion as at Jan 31, 2023, a decrease of RM36.7 million or 0.6 per cent.
"Delivery of world-class content and services; accelerating growth in new businesses and transforming our legacy cost base to reflect the new realities of the Pay-TV landscape continues to be our key focus.
"Despite a rather turbulent economic landscape and the challenges of reinvention faced by PayTV operators globally, Astro remains resilient, implementing multiple initiatives that broaden our technology accessibility and convenience, as well as diversifying our business," said group chief executive officer Euan Smith.
The company said the current strength of the US dollar continues to impact multiple cost lines in its business, while local economic conditions (exacerbated by geopolitical factors) and softening customer sentiments (including the impact of the recent service tax revision) also present challenges to the industry.
"In softening the impact of these challenges, we have introduced more affordable entry points on both PayTV and sooka to drive affordability during the last quarter, further enhancing the value of our products and services.
"Notwithstanding all this activity, the group continues to maintain a cautious outlook, carefully monitoring business conditions and ensuring effective cost discipline," it said.
