PETALING JAYA: Astro Malaysia Holdings Bhd
is maintaining a cautious outlook as it grapples with content piracy, shifting consumer behaviour, and ongoing cost pressures, after its net profit halved in the financial year ended Jan 31, 2026 (FY26).
The content and entertainment group reported a 51.1% drop in net profit to RM65.13mil in FY26, as revenue declined 9.1% to RM2.79bil, weighed down by weaker subscription and advertising income, as well as softer contributions from rental and programming rights.
Despite the weak full-year performance, Astro’s fourth-quarter (4Q26) results showed a silver lining.
Revenue for the quarter slipped 7% to RM712.88mil, dragged by declines in both subscription and advertising segments, but net profit more than doubled to RM24.07mil from RM10.49mil a year earlier, largely due to lower financing costs and favourable unrealised foreign exchange gains.
In a filing with Bursa Malaysia, Astro said it continues to face a challenging operating environment, with content piracy remaining its biggest threat.
“Content piracy remains our biggest threat, and we continue to push hard in the fight against piracy,” the group noted, adding that regulatory advocacy and enforcement remain key priorities to safeguard both the company and Malaysia’s creative industry.
The group added that it is still operating under a dual cost structure, balancing legacy pay-TV expenses with ongoing investments in digital and streaming platforms, although legacy costs “continue to taper gradually.”
“Looking ahead, Astro continues to reprioritise resources based on business strategies, enhance cost discipline, and invest selectively in content, digital capabilities, and adjacent businesses that strengthen its platform ecosystem and drive sustainable long-term growth,” it said.
Segment-wise, its television business –the main earnings contributor – saw FY26 revenue fall 8.6% to RM2.65bil, while profit before tax declined 34% to RM58.3mil due to lower subscription and advertising revenue.
Pay-TV residential average revenue per user dropped to RM94.30 in FY26 from RM98.50 in the previous financial year.
Meanwhile, the radio segment continued to underperform, with revenue declining 17.7% to RM142mil in FY26 due to weaker advertising spending amid softer consumer sentiment, while profit before tax plunged 59% to RM36mil.
Weekly listeners fell to 16.2 million from 17.1 million a year earlier.
Astro said radio earnings were impacted by both the lower revenue base and higher operating costs, largely due to internal restructuring and several new initiatives to support long-term growth.
Looking back, group chief executive officer Euan Smith said Astro has, over the past decade, evolved from a satellite TV operator into a fully integrated content and digital entertainment platform.
“We believe our value-driven Astro One packs are well positioned to meet Malaysians’ needs by providing an affordable, safe and trusted way for them to stay informed while enjoying high-quality entertainment,” he said.
“The group continues to maintain a cautious outlook, carefully monitoring business conditions and ensuring effective cost discipline as consumers and businesses digest the impact of internal reforms and external uncertainties.”
Yesterday, shares of Astro closed half a sen or 6.67% higher at eight sen.
