Asian Pay TV: Sustainable 1.05 Cents Dividend, a 13% Dividend Yielder

Asian Pay TV (APTT) has released its full year results.

Summary

• Total revenue declined by 5.4% due to sunset TV business
• Dividends of 1.05 cents, guiding for 2025 to be 1.05 cents
• Broadband Business Growth of 5%

Business Prospects

Revenue will keep falling at around 5% per year, this is due to the shift away from TV. CEO has commented the task now is to upsell customers to higher tier broadband plans to ensure revenue does not decline as much.

Sustainable Dividend

APTT generated 149 million in cash last year, I expect further decline to 145 million in cash this year.

Interest Cost is expected to grow as well to 42 million with the expiration of hedges. With Capex needs of 35 million and taxes of 13 million, APTT has 55 million in spare cash. Its current dividend payout of 1.05 cents equates to 19 million in cash. 

Hence, there is headroom to maintain its 1.05 SG cents dividend as it continues to use the excess cash to pay down the expensive Singapore offshore debt. I expect APTT to eventually become a $120 million annual cashflow generating trust still giving it the ability to maintain 1.05 cents dividend.

Good Dividend Stock to Own

APTT will continue to see revenue loss due to its large TV segment being in a sunset industry. However, dividend wise, APTT can maintain a 1.05 cents dividend.

So it is a good dividend stock to own as long as 10% dividend yield is maintained. At current price of 8.3 Sg cents, it is a good buy.