Astro has reported its quarter three earnings recording a net loss for the first time of RM47 million against a revenue of RM828 million which the group said was amid macroeconomic headwinds and foreign currency volatility.
For the period, the group saw its revenue close in at RM2.52 billion which is lower compared to 2022 of RM2.66 billion, however compared to a profit of RM224 million, Astro is currently in the red at RM7.5 million.
Euan Smith, Group CEO of Astro remains optimistic: “Our strategic plans to transform Astro into a digital, streaming company are yielding results. Our new TV packs and broadband bundles have uplifted ARPU for the fourth consecutive quarter, by RM2.40 y-o-y to RM99.80. Our adjacent businesses, Astro Fibre and sooka, are both on a positive growth trajectory this year despite the headwinds.
“As previously announced, in Q3FY24, Astro completed a VSS programme, another key delivery within our ongoing programme to transform the legacy cost base. As a result of the exercise, the company reduced headcount by 20%. The cost of this exercise, RM52mn, is booked in this quarter and estimated payback will be under a year. The Group also exited the home shopping business so that its resources can be invested into the business lines that are delivering growth,” added Euan.
As for outlook, Astro said the ongoing strength of the USD continues to impact cost lines in our business, whilst local economic conditions (exacerbated by geopolitical factors) and softening customer sentiments also present challenges with regard to revenue growth. In response, we are introducing more affordable product entry points to drive product signups and support customers.
The Group maintains a cautious outlook and will carefully monitor business conditions and emphasise cost discipline.
