PETALING JAYA: Astro Malaysia Holdings Bhd
has posted a softer first quarter of financial year 2027 (1Q27) as revenue and profit came under pressure, even as disciplined cost control and resilient cash generation helped the group maintain stability amid selective consumer spending and ongoing shifts in media consumption.
For the quarter ended April 30, Astro recorded a revenue of RM659.6mil, a decline of 6.2% from RM703.1mil in the same quarter a year earlier, mainly due to lower subscription and advertising contributions.
Earnings before interest, tax, depreciation and amortisation (Ebitda) margins also declined by 2.3 percentage points year-on-year, reflecting higher costs related to set-top boxes and staff, including redundancy expenses, partially offset by lower content and licensing costs.
Its financial statements showed net profit plunged 97.8% to RM0.3mil from RM13.5mil previously, largely due to weaker Ebitda performance and higher net financing costs, which were impacted by unrealised foreign-exchange losses on unhedged lease liabilities.
This was partly cushioned by lower tax expenses and reduced depreciation and amortisation charges, the company said.
By segments, its television revenue fell 7.3% to RM620.8mil, dragged by weaker subscription and advertising income.
Television Ebitda dropped 18.9%, though this was mitigated somewhat by lower content costs.
In contrast, the radio division delivered stronger performance, with revenue rising 17.6% to RM5.8mil, supported by festive timing effects from Chinese New Year advertising spend, while Ebitda increased 15.2%.
Astro said in its statement it continued to generate strong cash flow, with free cash flow at RM100mil and cash balances of RM491mil.
It said net debt-to-Ebitda at the end of the quarter was at three times, while operating expenses declined 8% quarter-on-quarter as the group tightened cost controls.
Group chief financial officer Grace Lee said in a statement the operating environment remains challenging as consumers become more selective with spending.
“Despite these headwinds, Astro’s resilient performance during the quarter reflects the enduring appeal of quality local content, the strength of our integrated entertainment ecosystem, and the disciplined execution of our long-term strategy,” she said.
She added the group will continue focusing on strengthening customer value propositions, expanding adjacent businesses, and investing in content and streaming capabilities to support sustainable growth.
Astro also highlighted continued momentum in its content and digital ecosystem.
Local and vernacular content accounted for 84% of total viewing across its platforms, it said. It said its streaming platform Sooka continued to expand, with paying subscribers rising 29% year-on-year and total streamed minutes increasing 48% to nearly two billion.
Meanwhile, Astro said it has intensified its anti-piracy efforts, securing civil enforcement actions and removing more than 114,000 illegal streaming links, alongside regional cooperation targeting cross-border piracy syndicates.
