Astro All Asia Networks' Key Performance Targets Achieved
17-Mar-2009
FULL YEAR RESULTS ANNOUNCEMENT (for financial year
ended 31 January 2009)
* Group revenue up 14% at RM2.97 billion * Group EBITDA rose
20% at RM671 million * Robust subscriber growth for India DTH JV *
Recommends final dividend of 2.5 sen per share, totaling 10 sen per share for
FY2009
ASTRO ALL ASIA NETWORKS PLC achieved record high subscriber
additions in its Malaysian pay-TV business as the radio business continued to
expand at a healthy pace amid signs of a slowing economy and greater
competition. Good progress was also made in the pay-TV business in India.
Pay-TV subscriber growth in Malaysia was underpinned by a
strategy focused on targeting new customers through the Group''''s continuing
investment in local content. Gross subscriber additions in the year were at a
new high of 612,000 resulting in 374,000 net new customers. Churn remained
within targeted levels at 9.7%. This achievement was a major contributor to a
14% year-on-year increase in the Groups consolidated revenue, taking this to
RM2.97 billion. EBITDA (excluding costs and provisions incurred in respect of
the Indonesia Venture) rose 20% to RM671 million from RM557 million.
Sun Direct, a leading provider of Direct-To-Home satellite TV
services in India and in which the Group owns a 20% equity stake, continued to
grow driven by continuing demand for high-quality pay-TV services. Services were
initially launched in southern India but were subsequently expanded to all the
major metropolitan areas across the country. Sun Direct now has over 2.5 million
subscribers.
During the year, the Group has accounted for RM687 million of
cost incurred in providing services and support to a previously proposed joint
venture in Indonesia. While this has had a very significant impact on the
Group''''s results for the current year, the Board believes that adequate provision
has been made for costs associated with the now terminated business proposal.
Various legal actions have commenced in respect of developments in Indonesia and
the Group is required to account for costs associated with these actions as they
are incurred.
As a result of the cost of terminating the provision of
broadcast services in Indonesia and anticipated start-up losses arising in
certain regional investments, the Group reported a loss after tax and minority
interest of RM529 million.
Consistent with the Group''''s commitment to a progressive
dividend policy, the Board is pleased to recommend a final tax exempt dividend
of 2.5 sen per share, bringing the total dividend for the year to 10 sen per
share.
"The Malaysian business has delivered a strong performance for
the year amidst a challenging business environment. With the current economic
uncertainties, we must be cautious and manage the business with a high regard
for conserving cash and minimizing costs. However, we do believe we can continue
to grow the Malaysian pay-TV, radio and content businesses by strengthening
their value propositions to achieve better market share and implementing
effective cost management measures to sustain margins and profit growth. We
remain focused on product and service improvement and ongoing innovation." said
Chairman Dato'''' Haji Badri Haji Masri.
Other Highlights
Pay-TV
The pay-TV business benefit from marketing efforts targeted at
under-penetrated segments.
* Revenue up 14% at RM2.66 billion from a year earlier *
EBITDA higher at RM704 million; EBITDA margin at 27% * ARPU maintained at
RM82 from a year earlier
Radio
Radio operations saw higher revenue due to strong demand by
advertisers and rate card revision.
* Revenue up 8% at RM182 million from a year earlier *
EBITDA rose 17% to RM83 million
Summary of Group FY2009 Results
FY2009
FY2008
Revenue (RM ''''m)
2,972
2,602
EBITDA (RM ''''m)
671
557
Net Loss after tax &
minority interest (RM ''''m)
(529)
(6.2)
Pay-TV Subscribers (mlns)*
2,646
2,272
Radio Listeners (mlns)**
11.0
10.6
* Residential subscribers as at end of period ** Based on
the Radio Listenership Survey Sweep 2, 2008 performed by Nielsen Media Research
in August 2008
About ASTRO
ASTRO ALL ASIA NETWORKS plc (AAAN) is the holding company for
MEASAT Broadcast Network Systems Sdn Bhd, the sole operator of direct-to-home
satellite pay television services in Malaysia under the "Astro" brand, and
Airtime Management & Programming Sdn Bhd, the leading commercial radio
broadcaster in Malaysia. Celestial Pictures Ltd, a subsidiary of AAAN in Hong
Kong, owns and distributes the world''''s largest Chinese film library as well as
operates the Celestial Movies Channel. Astro Entertainment Sdn Bhd produces and
aggregates local content for distribution primarily in Malaysia and Indonesia
but also increasing to other regional and international markets such as
Singapore, Vietnam and the Middle East. AAAN also has investments in pay
television and radio broadcasting in India. AAAN, which is listed on Bursa
Malaysia, operates out of the All Asia Broadcast Centre, a fully-integrated
digital broadcast and production complex in Kuala Lumpur.
