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Astro’s revenue takes a hit as subscription and advertising underperform

Astro’s revenue for January 2019 was lower by 0.9% against the corresponding year of RM5,530.8 million, mainly due to a decrease in subscription and advertising revenue. On a quarter-to-quarter basis, revenue was also lower by RM20.4 million (1.5%) due to lacklustre subscription revenue.

Overall, Astro’s net profit decreased by 39.7% to RM460.8 million in January 2019 compared to the same period the previous year. On a quarter-to-quarter basis, net profit decreased by 34.3% mainly due to higher net finance costs. Television and radio revenue were lower by 2.4% and 4.8% respectively. Home shopping’s revenue was 16.2% higher.

Revenue for its television and radio segments were the most affected. Television revenue for the current year dropped 2.1% to RM4,811.5 million against the corresponding year, mainly due to a decrease in subscription revenue caused by lower package take-up. Meanwhile, Astro’s radio revenue decreased to RM292.9 “due to an unfavourable operating environment leading to lower client advertising spend”, according to its financial report.

Home shopping revenue, however, was 29.0% higher at RM374.0 million year-on-year. Astro attributed the performance to an increase in the number of products sold due to a rise in offerings and tactical campaigns executed in January 2019 to capitalise on the tax holiday and festive celebrations.

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