Astro reports higher net profit for first quarter

Astro Malaysia Holdings Bhd group CEO Euan Smith.

KUALA LUMPUR: Despite reporting higher profit for its first quarter, Astro Malaysia Holdings Bhd is maintaining a cautious outlook while carefully monitoring business conditions and ensuring effective cost discipline.

“The current strength of the US dollar continues to impact multiple cost lines in our business, while local economic conditions (exacerbated by geopolitical factors) and softening customer sentiment continue to affect the industry,” the content and entertainment group said in a filing with Bursa Malaysia.

In the first quarter ended April 30, Astro’s net profit climbed to RM17mil, or earnings per share of 0.33 sen, compared with RM15.9mil, or 0.30 sen in the same corresponding quarter last year.

“The increase resulted from lower net financing costs driven by favourable unrealised forex gains arising from unhedged lease liabilities, offset by lower earnings before interest, taxes, depreciation and amortisation (Ebitda), higher amortisation of intangible assets and tax expenses,” Astro said.

Revenue, however, dipped 9.85% to RM772.5mil against RM856.9mil a year prior, primarily driven by a reduction in subscription and advertising revenue.

As of April 30, the group had total assets of RM5.6bil, compared with RM5.66bil as of Jan 31, 2024, a decrease of RM56.6mil or 1%.

Group chief executive officer Euan Smith said Astro in its current financial year ending Jan 31, 2025 (FY25) aims to attract new customers with better content, expand businesses like sooka and Astro Fibre, while also reducing legacy costs for better global competitiveness.

He noted that the launch of Astro Studios earlier this year signalled a thrilling new phase for Astro, firmly establishing Malaysia as a hub for exceptional content creation.

“Astro Studios is our platform to build, showcase, and demonstrate what our industry can achieve.

“Our creative expertise and strong ties within the Malaysian ecosystem enable us to consistently produce hit shows year-round. Our content portfolio spans live signature events, Astro Originals, dramas, local sports, news, and children’s programming,” Smith said.

“As we enhance our content, we’ve introduced value-added packs featuring staple content such as sports and local programming. Additionally, we’re making sooka an essential entertainment companion, accessible on personal devices and televisions with our latest sooka TV Stick. With ongoing innovation in both content and technology, we are set to solidify our position as Malaysia’s leading entertainment and streaming destination.”

Meanwhile, Astro has appointed Prashant Kumar as a new independent non-executive director, effective July 1, 2024.

Prashant is a leading market futurist and digital maven in the Asia-Pacific region. He is the founder of marketing consultancy Entropia and served as the president of IPG Mediabrands Asia.