Astro shares fall as profits slump 93%
STOCK ON THE MOVE
Thursday, 27 Sep 20189:42 AM MYT
KUALA LUMPUR: Astro Malaysia Holdings
image: https://cdn.thestar.com.my/Themes/img/chart.png
Bhd’s shares fell 4.8% in early trade Thursday after the company reported a 93.3% slump in profit in the second quarter ended July 31, 2018.The pay-TV operator, is one of the top losers, shedding 4.82%, or eight sen to RM1.58.
Astro’s earnings dropped in the second quarter ended July 31, as the high content cost of the 2018 FIFA World Cup reduced its margins, while the weaker ringgit resulted in higher finance charges.
Advertising expenditure (adex) during the period was soft.
Revenue was steady at RM1.42bil, with the average revenue per user (ARPU) for its pay-TV business steady at RM99.9.
Separately, Astro said it has secured the exclusive broascasting rights to the Premier League for the next three seasons till 2021/22.
Affin Hwang Capital Research said Astro’s 1HFY19 core net profit of RM239.3mil (-48% yoy) was below its and consensus expectations.
“We revise downwards its FY19-21 core EPS forecasts by 8.7-20.5%, given the challenging outlook for Astro.
“We lower our DCF-derived 12-month target price to RM1.77, but maintain our ‘hold’ rating on Astro,” Affin said.
Read more at https://www.thestar.c
Astro shares fall as profits slump 93%
STOCK ON THE MOVE
Thursday, 27 Sep 20189:42 AM MYT
KUALA LUMPUR: Astro Malaysia Holdings
image: https://cdn.thestar.com.my/Themes/img/chart.png
Bhd’s shares fell 4.8% in early trade Thursday after the company reported a 93.3% slump in profit in the second quarter ended July 31, 2018.The pay-TV operator, is one of the top losers, shedding 4.82%, or eight sen to RM1.58.
Astro’s earnings dropped in the second quarter ended July 31, as the high content cost of the 2018 FIFA World Cup reduced its margins, while the weaker ringgit resulted in higher finance charges.
Advertising expenditure (adex) during the period was s
Revenue was steady at RM1.42bil, with the average revenue per user (ARPU) for its pay-TV business steady at RM99.9.
Separately, Astro said it has secured the exclusive broascasting rights to the Premier League for the next three seasons till 2021/22.
Affin Hwang Capital Research said Astro’s 1HFY19 core net profit of RM239.3mil (-48% yoy) was below its and consensus expectations.
“We revise downwards its FY19-21 core EPS forecasts by 8.7-20.5%, given the challenging outlook for Astro.
“We lower our DCF-derived 12-month target price to RM1.77, but maintain our ‘hold’ rating on Astro,” Affin said.
Read more at https://www.thestar.com.my/business/business-news/2018/09/27/astro-shares-fall-as-profits-slump-93pc/#q4eqSPd7TVhU36FA.99om.my/business/business-news/2018/09/27/astro-shares-fall-as-profits-slump-93pc/#q4eqSPd7TVhU36FA.99
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