Astro Malaysia Holdings Bhd’s first-quarter financial performance for financial year 2027 (1QFY27) came in below expectations, as weaker advertising revenue, declining average revenue per user (ARPU) and higher operating costs weighed on its underlying performance.
The company recorded a core net profit of RM11.1 million for the quarter, more than three times higher compared with the previous corresponding period. However, analysts noted that the earnings improvement was largely supported by the recognition of a sizeable one-off deferred tax asset amounting to about RM8.3 million.
Excluding the tax benefit, Astro’s underlying earnings remained weak, with the group recording a loss before tax (LBT) of RM4.2 million during the quarter. This was below expectations, with the result accounting for 47% of the full-year forecast and 58% of consensus estimates.
Analysts said the weaker-than-expected performance was mainly due to lower advertising income and unexpected staff redundancy costs.
Looking ahead, management expects tax charges to normalize, suggesting limited potential for similar tax-related earnings support in subsequent quarters.
Subscription Revenue Declines Amid ARPU Pressure
Astro’s revenue declined 6% year-on-year (YoY) in 1QFY27, mainly due to a 7% YoY decline in television subscription revenue.
The decline was attributed to continued pressure on ARPU, which fell to RM93.90 compared with RM98.00 in 1QFY25, as well as potential subscriber attrition.
The lower ARPU trend was partly linked to increased adoption of Astro One’s entry-level packages, as the group continues its strategy to expand penetration among mass-market consumers through more affordable offerings.
While the strategy may help customer retention and acquisition, it has also placed pressure on subscription yields.
Advertising Market Remains Challenging
Advertising revenue also disappointed, declining 1% YoY despite a favourable low base effect.
The quarter included spending momentum from the Chinese New Year (CNY) festive period, which shifted from late January in 2025 to mid-February in 2026, meaning CNY-related advertising expenditure was captured within 1QFY27.
However, overall advertising performance remained subdued as brands continued shifting budgets from traditional television platforms towards digital channels, which offer more measurable returns and targeted reach.
Radio advertising provided some support, increasing 10% YoY due to seasonal demand during the festive period.
Higher Costs Add Pressure
The weaker revenue performance, combined with higher set-top box expenses and staff costs including redundancy charges, pushed Astro into a pre-tax loss during the quarter.
Despite these challenges, the company reported higher core net profit due to the recognition of tax credits.
Analysts noted that without the tax benefit, the quarter reflected continued pressure on Astro’s core operations, particularly from changing consumer behaviour, competitive digital platforms and a more cautious advertising environment.
Astro continues to focus on strengthening its streaming ecosystem and leveraging
