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.

Some analysts have stopped covering the stock. Those that remain like Maybank Investment Bank Bhd and Public Investment Bank Bhd are mostly negative about the company’s prospects.

There are four “sell” calls and only one “buy” call, with a consensus target price of 16 sen.

Its revenue and profit for the fourth quarter ended Jan 30, 3025 were lower than the previous quarter.

Over-the-top media services like Netflix and other online offerings, the rising living cost and the anticipated electricity tariff hike all contribute to the negative sentiment.

The company has three distinct services, including Astro Pay-TV, NJOI Prepaid and sooka, an over-the-top (OTT) service. But for Euan Daryl Smith, group CEO, the tide could turn this year.

He tells StarBiz 7 that the company’s penetration in the country is still extremely high, and he has been trying to recapture Astro’s glory days.

According to Smith, Astro has 5.3 million subscribers in 65% of households and an 80% radio market share.

The company owns 13 radio stations, including popular ones like LiteFM, Era FM, THR Raaga and Melody FM – cutting across the common languages spoken in Malaysia.

“We’re part of the fabric of society. We’ve been around before OTT services came about. We have double the penetration rate of most markets,” he says.

Smith acknowledges the company’s problems, and the constant complaints from customers.

“I wish everyone spent less time bashing Astro and instead promote it as a local champion. We should be growing the entire industry and driving cultural relevance outside of Malaysia,” he says.

Common complaints include repeats and rain fade but Smith reckons customers are missing out on what actually makes Astro unique as a homegrown company.

He goes as far as saying that his dream is to see Malaysia shine in terms of local content like South Korea.

Having worked for companies that provide Pay TV including Sky Deutschland GmbH and Foxtel, Smith says he has met with many within the industry and has been surprised to hear that no one mentions Malaysia when it comes to production.

“Skills-wise, there’s no reason it can’t happen. It’s about will and concerted effort. We don’t lack talent, it is right here, 100% of it,” he says.

To be fair, productions like One Cent Thief, Kahar and Sheriff have done exceptionally well.

For those who enjoyed Sheriff, in particular, the second instalment is in the works.

The drama Andai Tiada Dia, which started airing in October 2024, had over seven million viewers who watched all 36 episodes religiously.

Smith says the game plan this year is to continue focusing on local content, as that has been most impactful.

Five years ago, 64% of what Malaysians watched was local content. Today it is 79%.

From a pie perspective, content used to be local, sports and international. While sports has remained relatively the same, international content has been reduced.

“People are more interested in local content because we’re good at it, and we make it ourselves.

“Besides, so much of international content now is free in the form of pirated and illegal downloads, so why would we pay for it?” he asks.

He is also pushing for more local content to be shown internationally.

He says children’s content like Omar & Hana has been quite successful since the language can be dubbed.

“We had some success selling our horror genre to Indonesia. It seems to resonate well there. At the moment, we don’t have a great deal of success with thrillers or dramas overseas but we’re pushing for it,” he says.

Additionally, the company has developed a co-production mentality – it is currently building things with a South Korean company.

“In the future, we’ll have more of these coming, focusing first on Indonesia, Singapore, Thailand, and then South Korea,” he says.

A gaming part of the company is also being considered, where he is hopeful to cater to gamers and the like.

According to him, content, product and marketing are the three things he wants to spend money on.

“Every year, we’re cutting legacy costs as much as possible as we find ways to be more efficient. All of the stuff we do is still in high demand. Moreover, we’re expanding our sports and entertainment capabilities. The flag of Malaysia is being flown by us, but we don’t get enough credit for it.”