Four key takeaways about the Astro Malaysia's Q3 results

  • Pay-TV customers declined, but overall customer base expanded
  • Home shopping business experienced a QoQ revenue decline

Four key takeaways about the Astro Malaysia's Q3 results

Astro Malaysia management team showcasing Astro digital offerings (Astro on the Go, Tribe and Go Shop), after its 9MFY17 Press Conference – (From left)  Liew Swee Lin, Chief Commercial Officer; Henry Tan, Chief Operating Officer; Rohana Rozhan, Group Chief Executive Officer; Jake Abdullah, Astro Radio Chief Executive Officer; Iskandar Samad, Tribe Chief Executive Officer; Grace Lee, Astro GS Shop Chief Executive Officer. ​

 

Astro Malaysia Holdings Bhd, the country's dominant pay-TV operator, saw a 42% jump in its third quarter net profit at RM151 million, partly helped by the lower unrealised foreign exchange loses, lower finance cost and lower depreciation of property, plant and equipment. (RM1 = US$0.23)

 

During the third quarter ended October 31, 2016, its revenue rose 3.6% at RM1.42 billion. For the nine-month period, the company registered a net profit of RM478.6 million and a revenue of RM4.22 billion -- representing an increase of 16% and 3.5%, respectively.

 

During the quarter, it company posted an unrealised forex loss of RM54.8 million, 76% lower than the RM237 million unrealised forex loss same quarter a year ago. 

 

The company, controlled by tycoon Ananda Krishnan, also managed to expand its total customer base by 325,000 to 5.02 million households -- mainly thanks to its fast growing NJOI customer base. 

 

While there are many other talking points on Astro Malaysia's third quarter results, Digital News Asia would like to share some of the key highlights with our readers:

 

Declining pay-TV subs:

Four key takeaways about the Astro Malaysia's Q3 results

While Astro's total customer base went up by 7% at 5.02 million household, versus 4.70 million a year ago, its pay-TV customer base is on a declining trend. 

 

In fact, this is the third consecutive quarters that the company registered a decline in terms of its pay-TV customer base -- from 3.55 million in January 31, 2016 to 3.44 million in October 31, 2016. 

 

The decline is understanable for a few reasons. First, is that the country's slowing economy - which is growing slower than last year - is starting to impact consumers' wallet.  Consumer may have decided to move from pay-TV subcription and migrate* to NJOI -- whereby customers can buy TV contents via prepaid. 

 

Another good news is that the company managed to grow its b.yond PVR subscriber base, Valuepack customer base and Astro-on-the-Go downloads during the quarter. 

 

Also, it recorded a churn of 12% during the third quarter -- which is believed to be the highest in more than four years.

 

Next page: Even shoppers are spending less on home-shopping?

 

 

 
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