Astro Malaysia pushes ahead with transformation

KUALA LUMPUR: Astro Malaysia Holdings Bhd is maintaining a cautious outlook as it continues to push ahead with its business transformation.

The media and entertainment group registered a net loss of RM47.05mil in the third quarter of its 2024 financial year (FY24), which compares to a net profit of RM5.8mil in the same quarter in 2022.

The group registered a loss per share of 0.9 sen as compared to earnings per share of 0.11 sen in the comparative quarter.

According to the group, the decline was owing to lower earnings before interest, tax, depreciation and amortisation (Ebitda) margin due to higher staff-related costs following from a voluntary separation scheme (VSS), content costs, impairment of receivables and other costs and fees.

In a statement, Astro group CEO Euan Smith said the company completed its VSS in 3QFY24, which reduced headcount by 20%.

He said the VSS cost the company RM52mil, booked in the current quarter, while estimated payback would 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 added.

Revenue in 3QFY24, meanwhile, was RM828.55mil, lower against RM885.39mil in 3QFY23.

For the year-to-date period, the group posted a net loss of RM7.51mil as compared to a net profit of RM204.29mil in the previous corresponding period. Revenue was RM2.52bil in 9MFY24 against RM2.67bil in 9MFY23.

Moving forward, Astro says investments are firmly focused on its long-term and sustainable growth that will included improved content production, growing its adjacent businesses and transforming legacy cost structures to reflect the realities of the local Pay-TV market, which mirrors global trends.

"Ongoing strength of the US dollar continues to impact cost lines in our business, whilst local economic conditions (exacerbated by geopolitical factors) and softening customer sentiments also present challenges with regard to revenue growth.

"In response, we are introducing more affordable product entry points to drive product signups and support customers," it said.