Asian Pay Television Trust (S7OU) H1 2023 earnings summary

Executive summary

• H1 revenue was S$135.3m and EBITDA S$78.1m; reported declines reflected FX, while constant-NT$ revenue grew 1.1%.

• Broadband and Premium digital TV gains partly offset Basic cable TV subscriber losses; ~10,000 net subscribers were added in Q2, bringing the total base to ~1.318m.

• H1 net debt repayments of S$42m reduced gearing to 48.1%; FY2023 distribution guidance remained 1.05 cents per unit.

Financial highlights

• H1 revenue fell 6.9% YoY to S$135.3m and EBITDA declined 8.8% to S$78.1m; EBITDA margin was 57.7% versus 58.9%.

• In constant NT$, revenue grew 1.1% in H1 and 1.9% in Q2; FX reduced reported revenue variances by 8.0% in H1 and 6.8% in Q2.

• H1 profit after income tax fell 17.5% to S$19.6m, while Q2 profit rose 7.8% to S$12.4m.

• H1 operating expenses decreased 4.2% to S$57.2m; capital expenditure fell 20.0% to S$13.8m.

Outlook and guidance

• Broadband and Premium digital cable TV subscribers are expected to increase in 2023; Basic cable TV subscriber growth is not expected in Taiwan’s saturated market.

• Revenue depends on managing ARPU pressure; lower home-shopping demand and internet retail competition are expected to weigh on channel-leasing revenue.

• FY2023 operating expenses are expected to be in line with 2022; capital expenditure will be monitored and focused on sustainable growth opportunities.

• FY2023 distribution guidance remained 1.05 cents per unit, paid in two 0.525-cent instalments, subject to no material changes in planning assumptions.