PETALING JAYA: Amid persistent macroeconomic headwinds and foreign currency volatility, Astro posted revenue of RM891 million in its first quarter ended April 30, 2023 (Q1’24) with broadband and enterprise segments showing positive trajectory year-on-year (y-o-y). Earnings before interest, taxes, depreciation and amortization (Ebitda) rose 36% quarter-on-quarter to RM248 million in Q1’24, due to higher sports content cost in the previous quarter, Q4’23.
The group recorded normalised profit after tax and minority interests (Patami) of RM62 million in Q1’24, Patami was impacted by higher unrealised forex loss due to transponder lease liabilities as the US dollar strengthened.
The group remained cash generative and proactive in its capital management. The company has declared a first interim dividend of 0.25 sen per share, exercising caution as Astro continues to reinvest in its transformation for long-term growth.
Group CEO Euan Smith said its playbook is transforming Astro into a digital, streaming company, with about 25% of its customers are now enjoying our new streaming TV packs, which offer 11 premium streaming apps on top of our sparkling slate of Astro Originals and live signatures, sports, movies, news and kids.
“Our new TV packs, which can be bundled with our own internet service, Astro Fibre, continue to see good take up as customers can seamlessly stream on demand entertainment and enjoy greater value. As such, our ARPU has grown by RM1.30 y-o-y to RM98.70 in Q1’24. Astro Fibre had a great first year, driving our broadband base higher by 28% y-o-y.
“In a market where viewing share is dominated by local content, Astro is Malaysia’s largest content creator, originating winning local originals like One Cent Thief, Projek: High Council and Liar; and local signature IPs like Gegar Vaganza Season 9 and Big Stage. Our latest movie blockbuster, Polis Evo 3 grossed ticket sales of RM50 million so far and is the No.1 movie in Malaysia beating all Hollywood blockbusters,” he said in a statement.
“Our (over-the-top) OTT aggregation strategy is advancing. WeTV is the latest to join Astro’s growing family of streaming apps, namely BBC Player, beIN SPORTS CONNECT, Disney+ Hotstar, HBO Go, iQIYI, Netflix, TVBAnywhere+, Viu and ZEE5, in addition to our own Astro GO. Streaming on Ultra and Ulti boxes, as well as on Astro GO is growing significantly, with On Demand shows streamed jumping 31% y-o-y to 194mn in Q1FY24. Ultra and Ulti Boxes installs grew 42% y-o-y to 860k while Astro GO saw its monthly active users rise 7% y-o-y to 566k, with average weekly viewing time of 3.5 hours,” Euan added.
On outlook, the company said that FY24 will see it continuing the journey to be the entertainment and streaming destination of choice for Malaysians by investing in our transformation for long term and sustainable growth.
This will encompass delivering the best content experience, across all platforms through New Astro as well as becoming the nation’s top aggregator of the best streaming and lifestyle apps. In addition, it plans to elevate local content with high production value and premium storytelling via its Astro. Originals, signatures and movies, ramping up the growth of its streaming app sooka, broadband and addressable advertising as well as leveraging digital, data and technology to reimagine our business models and transform their legacy cost base.
Astro accounts for half of content investment in Malaysia, with the Group’s local content capturing 77% of viewing share. They are reinventing their content proposition to meet the increasing demand for high quality local content on all screens, and the success of their recent Astro Originals, signatures such as Projek: High Council, Andai Itu Takdirnya, Family Feud and Liar, latest blockbuster, Polis Evo 3 and new local sports content, Liga Malaysia bear testament to this.
“With third-party cookies soon to be phased out, we expect Addressable Advertising to gain traction over the longer-term 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 Astro’s first-party data,” said Euan
The group is now equipped with a holistic audience measurement on Linear and On Demand and will be augmenting this measurement currency to include Commercial Establishments. Meanwhile, their own internet service Astro Fibre continues to see encouraging traction especially across broadband-content bundles, and is now available to enterprise customers as well.
