PETALING JAYA: Astro Malaysia Holdings Bhd
will continue to invest in long-term and sustainable growth, focusing on content, broadband, streaming, addressable advertising, customer experience, data and technology, while prudently managing costs.
The pay-TV operator’s revenue was up by 7% on a quarter-on-quarter (q-o-q) basis for its fourth quarter ended Jan 31, 2023 (4Q23) to RM991mil, underpinned by higher advertising expenditure (adex) and a larger broadband base.
Earnings surged by 844% q-o-q to RM55mil in 4Q23 on the back of higher revenue and unrealised forex gains.
Earnings per share for the quarter was 1.05 sen. Unrealised forex gains derived from transponder lease liabilities as the ringgit appreciated during 4Q23 were offset by higher sports content cost.
Group chief executive officer Euan Smith said Astro’s transformation plans have continued at pace in 2023, as it is beginning to see the benefits from investments made in content, product, connectivity, advertising and customer service, as the group aggressively moves into the new streaming-on-demand era.
“Customers are streaming more than ever on the Ultra and Ulti boxes, as well as on Astro GO, with our On Demand shows streaming rising 25% year-on-year (y-o-y) to 660 million.
“Our value-added streaming-focused TV packs, which can be bundled with Astro Fibre, are delighting our current customers and attracting new ones, contributing to the growth of both our average revenue per user by RM1 y-o-y to RM98.20, and increasing our broadband base by 34% y-o-y,” he said in a statement.
In 4Q23, Astro’s total adex rose by 14% q-o-q to RM126mil, driven by year-end festivities and FIFA World Cup Qatar 2022. Radex, TV adex and digital adex share stood at 73%, 34% and 2%, respectively, for the period.
Ultra and Ulti Boxes installations grew by 47% y-o-y in 4Q23 to 827,000, with Astro GO monthly active users posting a 10% increase y-o-y in 4Q23 to 581,000. The average weekly viewing time is over three hours.
Going forward, Astro intends to raise production quality, drive better engagement and provide comprehensive coverage of the Liga Malaysia sporting franchise.
“Astro’s strategic partnership with the Malaysian Football League marks its re-entry as the official broadcaster of Liga Malaysia.
“With local content capturing 75% of customers’ viewing share, the group will also continue to expand its pipeline of Astro Originals and other signatures to meet viewers’ demand for high-quality local content,” it said.
The group has aggregated 10 global streaming apps onto its flagship Ultra Box, which are included in Astro TV packs. Astro will also be adding lifestyle apps which are relevant for Malaysians in the near future.
“The group is now equipped with unified audience measurement on Linear and On Demand and has recently augmented this measurement currency to include commercial establishments.
“Astro expects addressable advertising to gain traction as more advertisers tap into its capability to deliver targeted ads to specific individuals or households based on location, affluence and other demographics by leveraging the group’s first-party data,” it said.
