Four key takeaways about the Astro Malaysia's Q3 results: Page 3 of 3
By Goh Thean Eu December 8, 2016
Flexing its Adex muscle:
One of the reasons why Astro is able to grow its top line during the third quarter (and nine months period) is the company's ability to grow its advertising income.
During the quarter, it managed to grow its advertising income by 13% to RM188 million (from RM161 million), mainly driven by its TV advertising income of RM104 million (16% growth from the RM84 million same quarter last year) and radio advertising income of RM83 million (11% growth from the RM75 million same quarter last year).
This is a commendable performance, especially when the overall radio and TV adex have grown by only 6% and 5%, respectively.
As expected, it also managed to grow its TV adex share to 37% during the third quarter (from 34% a year ago), and radio adex share improved to 73% (from 70%).
Growing non-subscription income:
For a long time, Astro has been very highly dependant on its TV subscriptions (those who pays a fixed amount monthly, or via prepaid).
In fact, a year ago, more than 80% of its total revenue are derived from TV subscription. For example: for the first quarter ended April 30, 2015, 84% of its revenue are from TV subscription. This number is starting to go down.
Today, its TV subcription revenue hovers around the RM1.08 billion - RM1.09 billion mark. During its most recent quarter, its TV subscription revenue was at RM1.09 billion (marginally lower than the RM1.095 million it recorded in the second quarter).
While its TV subscription revenue seems moving sideways, its other businesses are growing significantly -- in particularly its radio advertising, TV advertising and Go Shop business.
Today, pay TV subscription commands 76% of the group's total revenue.
*Please click here for the full report on Bursa Malaysia, or here for its presentation slides.
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