Latest news with #AstroMalaysiaHoldingsBhd
New Straits Times
20-06-2025
- Business
- 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.
The Star
19-06-2025
- Business
- 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.
New Straits Times
19-06-2025
- Business
- New Straits Times
Astro's Q1 earnings slip to RM13.48mil, revenue at RM703.09mil
KUALA LUMPUR: Astro Malaysia Holdings Bhd's net profit fell to RM13.48 million for the first quarter ended April 30, 2025 (1Q25) from RM17.01 million in the same quarter a year ago. Its revenue declined to RM703.09 million from RM772.53 million, the pay-TV operator said in a filing to Bursa Malaysia. Astro attributed this to a six per cent drop in television subscription revenue and a 13 per cent fall in advertising revenue. As a result, its earnings per share for the quarter came in lower at 0.26 sen from 0.33 sen. Astro said customers now spend 82 per cent of their time on its platform watching local content, up three percentage points quarter-onquarter (QoQ). "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. "We are also refining the cross-platform monetisation of our content IPs - across cinemas, on our video and digital platforms, via licensing and advertising deals, and to drive on-ground experiences," it noted. However, Astro said content piracy remains its biggest threat, and the group continue to push hard in the fight against piracy. It added that across Malaysia, courts had recently ruled in its favour with landmark decisions in the last 128 months, awarding Astro statutory damages and imposing tougher penalties on illegal streaming device (ISD) sellers and errant F&B outlets who illegally stream its content. "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. "Given the challenging environment, the group continues 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," it said.
The Star
02-06-2025
- Business
- The Star
Astro focuses on attracting new customers
Astro group CEO Euan Daryl Smith PETALING JAYA: Astro Malaysia Holdings Bhd will be focusing on attracting new customers, accelerating adjacent businesses and reducing its costs. Group chief executive officer Euan Smith (pic) remains optimistic that the pay-TV operator's video customer base will stabilise in the near future, underpinned by better product value propositions that cater to a wider range of customers. This, he added, will also be supported by the growing share of local content in its customers' viewing time. 'Financial year 2025 (ended Jan 31, 2025) (FY25) saw the highest growth of new Chinese subscribers in the last four years and an increased return of lapsed customers. 'Ongoing efforts to acquire customers in relatively untapped suburban areas and newer townships such as Sekinchan and Pandamaran (Selangor) have also contributed significantly to the general upwards trend,' Smith said in the company's annual report. He added that the group's production expertise and strong integration with the Malaysian creative ecosystem fuels the company's ability to deliver successful shows at scale, whether that be live signatures, Astro Originals, dramas, local sports, news, or children's content. 'Our new formats and captivating content increasingly include 360-degree engagement that goes well beyond the screen, to radio, to ground events, and into the vibrant social media and digital space.' Separately, Smith said Astro's adjacent businesses continue to show momentum. 'Enterprise, Astro Fibre broadband, addressable advertising and Sooka are each unlocking significant opportunities to meet a wider range of customer needs.' Having grown these businesses in FY25, Smith said the focus is now on increasing Astro's execution cadence for each of these business lines. 'Additionally, our ability to execute unified campaigns across all platforms and leverage Astro's extensive talent roster positions us uniquely to engage the entire Malaysian audience across TV, radio, digital, and at on-ground activations. 'Brands continue to trust us to deliver high-impact, targeted solutions.' In an era of intense competition and deep discounting, Smith said Astro is experimenting with novel and innovative approaches to differentiate its advertising expenditure offering. 'This includes repurposing scenes from our shows and movies into advertisements, a strategy that has encouraged investments and sponsorships from leading consumer brands, including for our movie titles (such as The Experts and Keluang Man).' Additionally, Smith said efforts around cost continue, with the group's overall cost base down by circa 8% in FY25 despite parallel investments to acquire new customers and grow new businesses. 'In particular, proactive measures to reduce legacy costs are helping ensure that our offerings remain competitive in the face of increasing pressure from over-the-top platforms and piracy.' Smith emphasised that major cost savings in the year included lower employee costs resulting from the headcount reduction achieved post the FY24 voluntary separation scheme. 'Our cost to serve dropped significantly as a result of our customer relationship management system re-platforming, other technology initiatives, and the mid-year retirement of the M3a satellite. 'Advancements in compression technology and delivery of more content via On Demand have allowed us to reduce transponder capacity and its associated costs.'
The Star
11-05-2025
- Business
- The Star
Astro wants to turn the tide
Astro Malaysia Holdings Bhd today is a pale shadow of its former self. 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.
