Astro remains upbeat despite softer earnings

PETALING JAYA: Despite lower earnings for the quarter ended July 31, 2025, Astro Malaysia Holdings Bhd still remains encouraged.

In a filing with Bursa Malaysia, the entertainment holding company said it posted a lower revenue of RM683.21mil for the second quarter ended July 31, 2025, compared with RM787.30mil achieved in the same quarter last year.

The drop was due to lower subscription revenue, sales of programming rights and advertising revenue.

Its net profit for the quarter under review, meanwhile, was also lower at RM16.39mil compared to RM54.71mil last year.

This was on the back of lower earnings before interest, taxes, depreciation and amortisation and higher net financing costs, which were impacted by unfavourable unrealised foreign exchange arising from unhedged lease liabilities and the depreciation of property, plant and equipment.

The group said it remains cash-generative with free cashflow of RM138mil for the quarter.

Group chief executive officer Euan Smith said the road ahead will be challenging but noted that the second quarter proved that the company was “still pressing on”.

“We will keep on growing customers, strengthening the adjacent businesses and reducing legacy costs, all the while staying true to our mission of being Malaysia’s number one entertainment and streaming destination,” Smith said.

According to Smith, new engines of growth have been taking shape, as sooka marked its fourth anniversary as Malaysia’s number one sports app this quarter, despite not having any major sports tournament.

Smith also said there was good momentum in Astro Fibre, which outperformed the market leaders in net additions this quarter – its customer base increased 12% year-on-year.

“Customers are responding to the simplicity and value of Astro One packs, and our newer Ultra and Ulti Boxes are driving satisfaction, reflected in the steady rise of our Net Promoter Scores.

“In August, we also recorded our first positive Pay-TV net add since 2018, a meaningful gain that signals all the hard work is bearing fruit,” he noted.

The group’s enterprise segment posted a 6% increase year-on-year even as softer consumer sentiment weighed on retail businesses.

“Looking ahead, we expect this segment to perform well in the second half of the financial year, supported by the return of high-demand sporting events such as the Premier League, the Malaysian Football League and the 2025 Badminton World Federation Championship,” Smith said.

For the six-month period ended July 31, 2025, Astro’s net profit dropped to RM29.87mil from RM71.72mil in the previous corresponding period, while revenue fell to RM1.39bil from RM1.56bil a year earlier.

Meanwhile, Astro will continue with its goal to become the nation’s top entertainment and streaming destination.

The group said investments will continue to focus on long-term and sustainable growth through various initiatives that include elevating local content.

“Customers now spend 82% of their time on Astro watching local content.

“We produce over 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,” Astro said.

The group will also aim to increase the volume and diversity of content in lower tiers while reducing entry pricing for its products.

It will also look at increasing uptake of its adjacent business like sooka and Astro Fibre while transforming legacy cost structures to support its growth.

Furthermore, the group said content piracy remains its biggest threat, and they will continue in their fight against it.

“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.