Asian Pay Television Trust: Navigating Revenue Shifts and Cost Management in Q3 2024

Asian Pay Television Trust (APTT) reported its third-quarter 2024 earnings, with earnings per share (EPS) declining to S$0.004 from S$0.006 in the same period last year. This article delves into the factors contributing to this decline and explores the strategic decisions and market dynamics influencing APTT's earnings.

APTT's earnings were impacted by a 3.0% drop in revenue to S$63.7m, driven by a 5.2% decrease in basic cable TV revenue and a 9.3% decline in premium digital TV revenue. Meanwhile, Broadband revenue increased by 3.9% due to focused subscriber acquisition, adding around 8,000 new subscribers during the quarter.


Operating expenses increased by 5.3% year-on-year, contributing to the 37% decline in net income. Despite a 3.9% increase in Broadband revenue, total revenue decreased by 3.0%, indicating that cost management may not have been sufficient to offset the revenue decline, leading to the decrease in EPS.

Foreign exchange rates and currency fluctuations had a notable impact on APTT's financial performance. The weaker Taiwan dollar (NT$) contributed to a negative variance of 4.0% in revenue and 3.6% in earnings before interest, tax, depreciation, and amortization (EBITDA) compared to the prior corresponding period. However, in constant NT$, total revenue increased by 1.0% for the quarter, indicating that the currency fluctuation was the primary factor driving the variance.

To address the decline in revenue and maintain profitability, APTT has implemented several strategies. The company has focused on Broadband subscriber acquisition, adding approximately 8,000 new subscribers during the quarter. This strategy has led to continued Broadband revenue growth in both Singapore dollars (S$) and New Taiwan dollars (NT$), with NT$ revenue increasing by 1.0% for the quarter. Additionally, APTT has made net debt repayments of S$39 million during the nine months, with another S$20 million expected in the next six months. The company has also entered into new interest rate swaps to hedge 100% of its offshore facilities until 30 June 2025, containing net exposure to rising interest rates to only 10% of total debt.

In conclusion, APTT's earnings in the third quarter of 2024 were influenced by a combination of factors, including revenue shifts, cost management, and currency fluctuations. The company's strategic focus on Broadband growth and effective cost management contributed to its earnings performance despite the revenue decline. As APTT continues to navigate the evolving market landscape, investors should closely monitor the company's financial performance and strategic decisions to assess its long-term prospects.