Astro wants to turn the tide
The media company's share price has been declining over the last few years and now hovers at 18 sen (near its all-time low of 16 sen), valuing the company at around RM940mil.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
20-06-2025
- New Straits Times
HLIB cuts Astro forecasts after weak Q1 results, maintains 'sell' at 13 sen
KUALA LUMPUR: Astro Malaysia Holdings Bhd is expected to face limited near-term catalysts amidst a challenging macroeconomic environment and ongoing structural shifts in the media industry, according to Hong Leong Investment Bank Bhd (HLIB). HLIB said Astro continues to grapple with mounting structural challenges, particularly due to cord-cutting trends and intensifying competition from over-the-top platforms. The firm noted that the recent launch of the rebranded "Astro One", which offers simplified and lower-priced bundles such as entertainment, sports, and epic packs starting at RM49.90, aims to improve affordability and value perception. "While this initiative may support subscriber acquisition, it has also led to average revenue per user dilution, which declined to RM98," HLIB said. HLIB highlighted that subscription revenue has historically contributed between 62 per cent and 77 per cent of group revenue. "As such, although the new pricing strategy may be tactically sound, it introduces near-term pressure on top-line performance and profitability. "Despite Astro's strong position in local content creation, advertising expenditure (adex) remains muted, and revenue headwinds continue to persist," it added. HLIB has maintained a "sell" rating on Astro, with a target price of 13 sen. The firm believes that Astro's earnings visibility remains clouded in light of persistent subscription decline with cord-cutting behaviour and softening adex. For the first quarter ended April 30, 2025, Astro recorded core profit after tax and minority interest of RM700,000, which only made up one per cent of HLIB's and consensus full-year forecasts. The negative deviation was due to lower revenue caused by a decline in advertising and subscription revenue. Meanwhile, year-on-year top-line was down by nine per cent on the back of the reduction in subscription and advertising revenue. Segment-wise, both TV and radio fell by eight per cent and 28 per cent respectively. The contraction in TV was due to lower subscription and advertising revenue, while radio was impacted by soft consumer sentiment leading to lower advertising spend. In view of the results shortfall, HLIB has cut its financial year 2025 (FY25) and FY26 forecasts by 51 per cent and 58 per cent respectively.
Malaysian Reserve
19-06-2025
- Malaysian Reserve
Astro's 1Q profit falls 21% on lower subscription and ad revenue
ASTRO Malaysia Holdings Bhd saw its net profit decline to RM13.48 million for the first quarter ended April 30, 2025 (1Q25), from RM17.01 million a year earlier, dragged by weaker television subscription and advertising income. Revenue for the quarter slipped to RM703.09 million, down 9% from RM772.53 million in the same period last year, the pay-TV operator said in a filing with Bursa Malaysia today. The group attributed the revenue decline to a 6% drop in television subscription revenue and a 13% fall in advertising revenue. Despite the softer top line, Astro said engagement on its platform remained robust, with customers spending 82% of their viewing time on local content, up three percentage points quarter-on-quarter. 'We produce 10,000 hours of new content annually to satisfy this demand, ranging from well-known signatures and dramas to thought-provoking Astro Originals, animation and movies,' it said. The group is also expanding efforts to monetise its intellectual properties (IPs) across multiple platforms — including cinemas, streaming, digital, licensing, advertising, and live experiences — to optimise content returns. However, Astro said content piracy remains its biggest threat and stressed it is continuing efforts to combat illegal streaming. It noted that courts across Malaysia had recently ruled in its favour in a number of piracy-related cases, awarding statutory damages and tougher penalties against illegal streaming device (ISD) sellers and F&B operators streaming its content without permission. 'We will continue to lobby for further regulatory reform and enforcement activity, not just to protect Astro, but to safeguard the future of the Malaysian creative industry,' it said. Astro added that it is maintaining a cautious outlook amid macroeconomic uncertainty, internal reforms and external headwinds, with a continued focus on cost discipline and operational resilience. — TMR
The Star
19-06-2025
- The Star
Astro posts 1Q net profit of RM13.5mil
PETALING JAYA: Astro Malaysia Holdings Bhd (Astro) said its biggest threat is content piracy, which it has continued to fight hard against. In a filing to Bursa Malaysia, the content and entertainment company said it will continue to lobby for more regulatory reforms and enforcement activity not just to protect itself, but to safeguard the future of the Malaysian creative industry. 'Across Malaysia, courts have recently ruled in our favour with landmark decisions in the last twelve months, awarding Astro statutory damages and imposing tougher penalties on illegal streaming device (ISD) sellers and errant F&B outlets who illegally stream our content,' it said. The company added that given the challenging environment, it will continue to maintain a cautious outlook, carefully monitoring business conditions and ensuring effective cost discipline as consumers and businesses digest the impact of internal reforms and external uncertainties. For the first quarter ended April 30, 2025, Astro Malaysia recorded a lower revenue of RM703.1mil, compared to the RM772.5mil recorded for the same quarter a year ago. Subsequently, this also drove down its profit, registering at RM13.45mil compared to RM17mil in the same quarter last year. According to Astro, the decrease in both revenue and profit was due to a reduction in subscription and advertising revenue. The lower figures was also attributed to decreased earnings before interest, taxes, depreciation, and amortisation, which were offset by lower net financing costs, favourable unrealised foreign exchange arising from unhedged lease liabilities, as well as reduced amortisation of intangible assets and tax expense. For television, revenue for the quarter under review fell 7.9% to RM670mil while radio's revenue also dropped 27.3% due to soft consumer sentiments leading to lower advertising spend. It also said its total liabilities had decreased by RM110mil on the back of lower borrowings by RM118mil and payables by RM44mil, offset by higher tax liabilities by RM34.2mil and derivative financial instruments by RM12.2mil. Moving forward, the company said its investments will continue to be firmly focused on long-term and sustainable growth by elevating local content, while increasing the volume and diversity of content in lower tiers. These will be coupled with reducing entry pricing for Astro and sooka products, with the intent to grow its base. 'Astro will also increase the uptake of its adjacent businesses and transform legacy structures to support all the other strategies,' the group said. Its board did not declare any interim dividend in respect of the first quarter ended April 30, 2025. At market close, Astro Malaysia's share price was recorded at 17.5 sen with a market capitalisation of RM913.33mil.
