Grroup CEO Smith said Astro’s strategic plans to transform into a digital, streaming company are yielding results.
PETALING JAYA: Astro Malaysia Holdings Bhd
will continue to maintain a cautious outlook with an emphasis on cost discipline, going forward.
For the third quarter (3Q) ended Oct 31, 2023, Astro’s advertising expenditure (adex) saw a growth of 13% quarter-on-quarter (q-o-q) to RM98mil.
The group’s average revenue per user posted an uplift of RM2.40 year-on-year (y-o-y) to RM99.80, driven by new TV packs and broadband bundles.
Astro’s radio expenditure, TV advertising expenditure (adex) and digital adex market shares in 3Q of financial year 2024 (FY24) stood at 78%, 31% and 2%, respectively.
Moreover, the group’s addressable advertising revenue increased by 150% y-o-y and the number of clients onboarded had almost tripled.
Group chief executive officer Euan Smith said Astro’s strategic plans to transform into a digital, streaming company are yielding results.
“Our adjacent businesses, Astro Fibre and sooka, are both on a positive growth trajectory this year despite the headwinds. Our broadband base increased by 22% y-o-y while sooka’s monthly active users (MAUs) rose over 80% q-o-q.
“Its subscriber base grew 50% q-o-q, driven by an increased content library, a new pricing model and enhanced targeted marketing,” he said in a statement yesterday.
Smith said the group’s enterprise business increased 14% y-o-y as the food and beverage industry continues its recovery from the Covid-19 pandemic years.
“As expected, streaming on Ultra and Ulti boxes and Astro GO continues to trend upward, with On Demand streaming rising 25% y-o-y to 589mil in the nine-month period ended Oct 31, 2023.
“Ultra and Ulti Boxes installs grew 30% y-o-y to 960,000 while Astro GO saw 545,000 MAUs actively engaged and averaged a weekly viewing time of 3.4 hours,” he said.
In 3Q of FY24, Astro completed a voluntary separation scheme, in line with its ongoing programme to transform the legacy cost base.
Smith said the company reduced headcount by 20% as a result of the exercise.
“The cost of this exercise, RM52mil, is booked in this quarter and the estimated payback will be under a year.
“The group also exited the home shopping business so that its resources can be invested into the business lines that are delivering growth,” he said.
For 3Q of FY24, Astro’s revenue declined by 6.4% y-o-y to RM828.6mil due to a reduction in subscription revenue, partially offset by an increase in advertising revenue and licensing income.
On the other hand, the group suffered a net loss of RM47.1mil or basic loss per share of 0.90 sen, from a net profit of RM5.8mil previously.
This was due to lower earnings before interest, taxes, depreciation and amortisation and higher tax expense.
It was offset by lower net financing costs, driven by a favourable unrealised foreign exchange losses arising from unhedged lease liabilities and lower amortisation of intangible assets.
Going forward, Astro said its investments are firmly focused on long-term and sustainable growth that will encompass elevating local content, consistently delivering outstanding memorable content, accelerating the growth of its adjacent businesses, as well as, transforming legacy cost structures to reflect the new realities of the local pay-TV market, mirroring global trends.
