KUALA LUMPUR: Astro Malaysia Holdings Bhd's net profit fell 2.1 per cent to RM164. 53 million in the third quarter (Q3) ended October 31, 2020 from RM170.85 million a year ago.
The satellite television provider said this was due to lower net financing costs, depreciation of property, plant and equipment and tax expenses.
Its Q3 revenue dropped 8.9 per cent to RM1.10 billion from RM1.21 billion, arising from a decrease in subscription and advertising revenue and being offset by increase in merchandise sales.
The group said its television segment revenue for the current quarter of RM946.1 million was lower by RM104.4 million or 9.9 per cent against corresponding quarter of RM1.05 billion, mainly arising from a decrease in subscription and advertising revenue.
The group's radio segment continues to be impacted by the slow economic activity caused by the Covid-19 pandemic, with revenue dropping 30.1 per cent compared to the same quarter last year.
"However, the home-shopping's revenue for the current quarter grew by 18.9 per cent to close at RM110.7 million compared with the corresponding quarter of RM93.1 million, primarily due to consumers' shift to online shopping following movement control order (MCO)," it said.
For the nine-month period, Astro's net profit fell 25.8 per cent to RM376.3 million from RM516.4 million, while revenue decreased 11.8 per cent to RM3.25 billion from RM3.69 billion.
Astro chairman Tun Zaki Azmi said Astro's balance sheet remained strong as it continued to be cash generative, cost disciplined and proactive in its capital management.
"The as board has declared a third interim dividend of 1.5 sen in Q3," he said.
The group remains cautious of the potential impact of the recently reimposed conditional movement control order (CMCO), which might be extended depending on external circumstances.
Astro said further extension(s) of CMCO might impact advertising and commercial revenue, amid structural changes in the media industry and ongoing acts of piracy.
"The group's agility in adapting to the new normal has allowed us to deepen our engagement with our customers, strengthen our value proposition and seize opportunities for adjacencies in commerce, broadband, digital and OTT.
"The group will continue to optimise, re-prioritise capex and actively manage its capital to further strengthen its balance sheet," it added.