Asian Pay TV Trust, Reduced Dividend, Reduced Target Price

Asian Pay TV Trust (APTT) has released its full year financial results. Below is a summary

Full Year (2025):

• Total Revenue: S$245.7 M (down 2.5% vs 2024)
• EBITDA: S$135.5 M (down 8.7%)
• Broadband revenue growth: +9.4%
• Cable TV revenue: Down 7.5% for the year

From 2026, dividend will be reduced from 1.05 cents to 0.8 cents, a 25% reduction. The reduction in DPU was attributed to a sharper-than-expected EBITDA decline in 2025. The Board reduced distributions to prudently manage cash flow and align with onshore loan repayment obligations. The cut was not intended to accelerate debt repayment, but rather to match scheduled loan servicing requirements.

Management expects EBITDA to continue declining and is monitoring the net debt-to-EBITDA ratio to avoid breaching loan covenants. While there remains sufficient headroom currently, they are mindful that debt levels must be reduced in tandem with declining EBITDA.

Dividend from Broadband business is expected to have a slight decrease due to dilution of the enlarged share capital arising from Dada capital injection into the Broadband Industry

APTT Target Price

A dividend of 0.8 SG cents is the new norm. I still maintain the view that demanding a 8% yield for the trust is fair. Hence target price is lowered to 10 SG cents.

Investors should be wary that APTT may turn to equity raising to retire debt to manage the net debt-to-EBITDA ratio in their loan covenants.