Asian Pay Television Trust (S7OU) H2 2023 earnings summary

Executive summary

• FY2023 revenue was S$266.4m and EBITDA S$154.2m; reported declines mainly reflected FX, while revenue in constant NT$ rose 0.1% YoY.

• Broadband growth partly cushioned Basic cable TV declines; Broadband exceeded 25% of revenue and total subscribers reached ~1.312m at year-end.

• A S$440m non-cash impairment contributed to a FY2023 net loss of S$560.6m; 2024 distribution guidance remained 1.05 cents per unit.

Financial highlights

• FY2023 revenue fell 6.8% to S$266.4m and EBITDA fell 8.6% to S$154.2m; EBITDA margin was 57.9% versus 59.0%.

• Q4 revenue declined 5.8% to S$65.4m and EBITDA declined 7.3% to S$38.1m; EBITDA margin was 58.3% versus 59.3%.

• FY2023 profit after tax was a loss of S$560.6m versus profit of S$45.5m in 2022, largely reflecting the S$440m impairment and other expense movements.

• In constant NT$, total revenue declined 1.7% in Q4 and increased 0.1% for FY2023; FX reduced reported revenue variance by 4.1% and 6.9%, respectively.

Outlook and guidance

• 2024 distribution guidance remained 1.05 cents per unit, payable in two 0.525-cent instalments, subject to no material changes in planning assumptions.

• Broadband and Premium digital cable TV subscribers are expected to grow in 2024; Basic cable TV growth is not expected in Taiwan's saturated market.

• Revenue will depend on managing continued ARPU pressure; operating expenses are expected to be in line with 2023.

• Interest costs may be affected by rate changes on the 17% of debt that remains unhedged; capital spending will focus on Broadband growth, network capacity and sustainability.