Asian Pay Television Trust (S7OU) Q1 2024 TU earnings summary

Executive summary

• Q1 revenue was S$63.453m, down 5.4% YoY, and EBITDA was S$38.165m, down 3.1%; broadband growth cushioned Basic cable TV declines, while FX weighed on reported results.

• Total subscribers reached 1.319m at 31 March 2024, up 7,000 QoQ after non-paying subscribers were removed across all three services.

Financial highlights

• Revenue declined 2.6% in constant NT$, with FX contributing a negative 2.8% variance.

• Net profit after tax rose 92.2% YoY to S$13.792m; operating profit increased 22.1% to S$30.0m.

• Net FX gain was S$2.4m versus a S$0.2m loss, and derivative mark-to-market gain was S$2.4m versus S$0.4m.

• Net operating cash inflow was S$29.7m versus S$41.6m YoY; quarter-end cash and cash equivalents were S$71.4m.

Outlook and guidance

• FY2024 distribution guidance was reaffirmed at 1.05 cents per unit in two 0.525-cent instalments, subject to no material changes in planning assumptions; first-half distribution is scheduled for September 2024.

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

• Revenue depends on managing ARPUs under pressure; operating expenses are expected to be in line with 2023.

• Growth priorities include mobile-operator partnerships, broadband-only acquisition, higher-speed plans, Android gateway services and data-backhaul opportunities.