Asian Pay Television Trust (S7OU) H1 2024 earnings summary

Executive summary

• H1 revenue was S$125.823m, down 7.0% reported and 3.6% in constant NT$; EBITDA was S$74.204m, down 5.0% and 1.6%, respectively.

• H1 profit after tax rose 36.0% to S$26.668m; Broadband growth partly cushioned declines in Basic cable TV and Premium digital TV.

• Broadband added ~10,000 subscribers in Q2, its highest quarterly increase in 10 quarters; total subscribers rose ~13,000 to ~1.332m.

• H1 net debt repayments were S$26m; FY2024 distribution guidance remains 1.05 Singapore cents per unit, including the 0.525-cent interim distribution.

Financial highlights

• H1 operating expenses fell 9.8% to S$51.619m; H1 operating profit rose 8.6% to S$55.5m and profit before tax rose 22.6% to S$34.1m.

• Q2 revenue was S$62.370m, down 8.6% YoY; EBITDA was S$36.039m, down 6.9%.

• H1 operating cash inflow was S$65.5m; net cash used in investing and financing was S$19.5m and S$55.5m, respectively.

• H1 net profit included foreign-exchange gains of S$3.336m and derivative mark-to-market gains of S$3.468m.

Outlook and guidance

• Premium digital TV and Broadband RGUs are expected to increase in 2024; Basic cable TV subscriber growth is not expected, and ARPUs remain under pressure.

• FY2024 operating expenses are expected to be in line with 2023; capital expenditure will be monitored and focused on Broadband growth.

• FY2024 distribution guidance remains 1.05 Singapore cents per unit in two 0.525-cent instalments, subject to no material changes in planning assumptions.

• Data backhaul is expected to become a meaningful Broadband income stream within the next few years as mobile operators expand network rollouts.