Asian Pay Television Trust (S7OU) Q3 2023 TU earnings summary

Executive summary

• Q3 revenue was S$65.669m and EBITDA S$37.968m; 9M revenue was S$201.001m and EBITDA S$116.055m. Lower Singapore-dollar results mainly reflected FX translation.

• Broadband growth and subscriber gains partly offset continued Basic cable TV declines; distribution guidance was maintained for H2 2023 and FY2024.

Financial highlights

• Q3 revenue fell 7.7% YoY and EBITDA fell 9.4%; 9M revenue declined 7.2% and EBITDA 9.0%.

• Profit after income tax was S$10.218m in Q3, down 24.5%, and S$29.833m for 9M, down 20.0%; unitholder EPS was 0.56 cents and 1.65 cents, respectively.

• Operating profit was S$26.6m in Q3, down 4.9%, and S$77.7m for 9M, down 4.2%; interest and other finance costs were S$10.6m and S$32.3m, respectively.

• Operating cash flow was S$33.2m in Q3 and S$81.2m for 9M, versus S$28.2m and S$100.2m in the prior-year periods.

• In constant NT$, revenue declined 0.4% in Q3 and grew 0.6% for 9M; FX caused adverse variances of 7.3% and 7.8%, respectively.

Outlook and guidance

• Distribution guidance was reaffirmed at 0.525 cents per unit for H2 2023 and 1.05 cents per unit for FY2024, subject to no material changes in planning assumptions.

• Premium digital cable TV and Broadband RGUs were expected to increase in 2023; Basic cable TV RGU growth was not expected, and ARPUs remained pressured.

• Operating expenses were expected to be in line with 2022 for 2023; capital expenditure would be monitored and focused on growth and long-term sustainability.

• Growth plans included broadband-only partnerships, higher-speed plans, Android gateway solutions and data-backhaul services.