Asian Pay TV Trust posts S$0.0025 DPU for Q2 as broadband segment gains speed
THE net profit of Asian Pay Television Trust (APTT) - which owns Taiwan Broadband Communications Group - was up 49.7 per cent to S$11.5 million for Q2 ended June, its trustee-manager announced before Friday's (Aug 12) market open.
It has declared a distribution per unit (DPU) of 0.25 Singapore cent for the quarter, while re-affirming its 2022 full year guidance of 1 cent per unit.
The trust's Q2 revenue came in at S$71.8 million, down 2.5 per cent, due to lower basic cable TV subscription revenue resulting from a decline in the number of subscribers and lower average revenue per user (ARPU), as well as lower revenue generated from channel leasing and airtime advertising sales.
Basic cable TV revenue was down 6.8 per cent to S$52.9 million, while premium digital cable TV was down 7.8 per cent to S$2.9 million. In the latter segment, revenue generating units (RGUs) increased by about 8,000, but ARPU fell by NT$3 (S$0.14) per month compared to the previous quarter. This was due to promotions and discounted bundles to draw users. ARPU was further weighed by video piracy.
However, the broadband segment was a bright spot, with revenues up 16.4 per cent to S$16 million. Broadband RGUs increased by 9,000 during the quarter, alongside a NT$4 per month improvement in ARPU from the previous quarter.
"The growth in both broadband subscribers and ARPU reflects the success of TBC's... strategy to target the broadband-only segment, partner with mobile operators, as well as to offer higher speed plans at competitive prices to acquire new RGUs and re-contract existing ones," the company said in its earnings statement.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
APTT's operating expenses for the quarter were down 13.7 per cent to S$45.7 million, on the back of foreign exchange and mark-to-market gains. Excluding both these items and depreciation and amortisation expense, total operating expenses were up 3.3 per cent to S$29.4 million.
Overall, for H1, APTT posted a 1.8 per cent dip in revenue to S$145.4 million, while net profit rose 57.7 per cent to S$23.6 million.
Looking ahead, APTT expects total operating expenses in 2022 to be higher than 2021, mainly due to the benefit of lower expenses in 2021 from the reversal of pole rental provisions. It has set "aggressive targets" to tighten capital expenditure.
To broaden its fixed-line broadband market share, TBC will also continue to offer higher speed plans at competitive prices, and step-up partnerships with mobile operators.
"There is a lot of room to win more broadband-only subscribers through our partnership programmes with mobile operators, and move our existing broadband subscribers to higher speed plans which are of higher value. Over the long term, our aim is to grow cash flows from broadband to a level that more than offsets the decline in our basic cable TV business," said Brian McKinley, CEO of the trustee-manager.
APTT closed at S$0.119, down 0.8 per cent or S$0.001 on Thursday.
READ MORE:
Copyright SPH Media. All rights reserved.
