Asian Pay TV (APTT) recently unveiled its full-year financial results, shedding light on its current position and future directions.
To sum it up, the company experienced a 5.4% dip in total revenue, primarily driven by the decline of its traditional TV operations. Nonetheless, APTT has maintained a dividend of 1.05 cents and is planning to keep it consistent through 2025. Meanwhile, the broadband sector showed resilience with a 5% growth, reflecting a more positive outlook in that area.
Looking ahead to business prospects, it’s apparent that the transition away from TV will continue to impact revenue, projecting an annual reduction of about 5%. In light of this, the CEO emphasized the importance of convincing customers to upgrade to more premium broadband packages, which could help mitigate the revenue drop.
On the topic of dividends, APTT managed to generate $149 million in cash last year. However, projections suggest a slight decrease to around $145 million this year. The forecast for interest costs is also set to rise, hitting $42 million as existing hedges come to an end. With capital expenditure pegged at $35 million and taxes at $13 million, APTT finds itself with $55 million in surplus cash. The dividend payment of 1.05 cents represents a sustainable portion of this cash reserve.
This strategic navigation through changing market demands is crucial for APTT as it shifts focus towards strengthening its burgeoning broadband division while ensuring fiscal responsibility and shareholder satisfaction.
