Astro's FY24 Net Profit Plunges 86%

The Malaysian Reserve ·  Mar 31 17:58

ASTRO Malaysia Holdings Bhd's net profit for the financial year ended Jan 31, 2024 (FY24) plummeted by 85.76% to RM36.88 million, the lowest since the company's listing in 2012.

This it said was largely due to lower earnings before interest, taxation, depreciation and amortisation (EBITDA).

The group cited higher broadband costs, staff-related costs from a voluntary separation scheme and higher net finance costs as contributing factors.

Excluding unrealised foreign exchange (forex) impact and post-tax VSS costs, the group recorded a full-year net profit of RM181 million.

The group experienced a 7.58% decline in revenue, falling to RM3.34 billion from RM3.62 billion in the previous year.

In the final quarter (4Q24), Astro saw an 18.95% decline in net profit to RM44.38 million from RM54.75 million a year ago.

The drop in earnings was attributed to lower revenue and increased net financing costs due to unfavourable unrealised forex losses from unhedged lease liabilities.

Revenue for the period also fell 13.63% to RM819.85 million was mainly driven by lower subscription revenue, advertising revenue, sales of programming rights, rental income and the closure of its Go Shop operations.

No dividend was declared for the quarter, with a payout ratio of 31% for the full year.

Despite economic challenges, Astro remains resilient, focusing on technology accessibility, convenience and diversifying its business.

The group cautioned about the impact of a strong US dollar and local economic conditions on multiple cost lines and customer sentiments.

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