Astro’s e-commerce venture hits RM75mil revenue in 6mths

• Company reports 4% year-on-year growth in overall revenue to RM2.7bil
• Ad income grew 5% growth to RM305mil; AOTG downloads up 31%

SATELLITE television operator Astro Malaysia Holdings Bhd said its e-commerce venture Go Shop, officially launched in February, reported RM75 million (US$17.4 million) in revenue in the first half of of fiscal 2016 (H1 2016), a half which ended July 31, 2015.
 
“Customers can also look forward to a Chinese-language Go Shop channel in the fourth quarter,” said chief executive officer Rohana Rozhan (pic above) after the company announced its financial results for the first six months of its financial year which ends Jan 31 2016.
 
Astro reported a 4% year-on-year growth in revenue to RM2.7 billion, a 7% rise in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) to RM962 million, a 15% increase in PATAMI (Profit After Tax And Minority Interest) to RM306 million – leading to Free Cash Flow (FCF) generation of RM589 million.
 
[RM1 = US$0.23]
 
According to Rohana, Astro added 426,000 net TV customers in H1 FY16, underpinned by strong take-up of its NJOI service, which grew 58% year-on-year (YoY) to hit 1.07 million subscribers.
 
This increased its Malaysian TV household penetration rate to 65% from 60% in the corresponding period a year earlier.
 
“We are driving take up of connected boxes and of Astro on the Go from 181,000 now to 500,000 by year end,” Rohana said.
 
“At the same time, we are ensuring our content proposition is second to none. As for our international content, we are ensuring that linear viewing is supplemented by strong on-demand proposition of same day as global premieres, live, social and box sets to cater for our customers’ viewing trends.
 
“We have launched a new download feature for Astro On The Go, where programmes can be downloaded on mobile devices for offline viewing,” she added.
 
The company said Astro On The Go downloads increased by 31% YoY to 1.6 million, with weekly viewing time exceeding 140 minutes.
 
Its advertising income registered a 5% growth to RM305 million, supported by higher TV viewership, radio listenership, and growing interest in digital, the company said.
 
Its share of TV and radio adex increased to 35% and 61% respectively.

“Amidst a challenging operating environment coupled with soft consumer sentiment, the group continues to deliver on its growth strategies to generate shareholder value creation,” said Astro chairman Zaki Azmi.
 
“On that note, the board is pleased to declare a second interim dividend of 2.75 sen per share, 22% higher compared to the same period last year,” he added.
 
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