As the new financial year FY25 unfolds, Astro Malaysia Holdings Berhad (Astro) marks the end of its first quarter (Q1FY25) by deepening its transformative journey. With renewed dedication, Astro has been crafting richer experiences for its customers, strengthening its content lineup, and ensuring every customer interaction brings satisfaction and joy.
Creating Value for Customers
Astro is steadfast in its mission to create unparalleled value for its customers. The launch of Rakyat-friendly packs, which now include TVB and Liga Malaysia in the base tier Primary Pack, exemplifies this commitment. By making these enhancements, Astro aims to provide more affordable options, attract new customers, and broaden its reach.
This initiative is already showing early success, with the onboarding of new customers increasing by 20% q-o-q. This period also saw the highest signups of Chinese content packs in the last four years, attesting to the appeal of Astro’s new offerings.
In addition, Astro’s streaming service, sooka, is breaking new ground in accessibility and convenience, and has now added the sooka TV Stick. Through strategic partnerships with leading brands such as Maxis, Hotlink, Umobile, CelcomDigi, Haier, LG, Hisense, Toshiba, Touch ‘n Go, Zalora, and Tealive, sooka saw significant rise in monthly average users (MAU) which increased by 28% with over 1mn and an 86% y-o-y rise in paying customers.
sooka’s exclusive position as Malaysia’s only streaming app with comprehensive live sports coverage, including EURO2024, sets it apart. This offering allows all Malaysians to enjoy one of the year’s most anticipated football events, further solidifying sooka’s presence in the market.
Astro Fibre is experiencing a robust 15% growth rate y-o-y. The performance is fuelled by high customer satisfaction with its 'WiFi Kencang' service and the impressive impact of steady word-of-mouth referrals proving that customers are not just using the service but are also sharing their positive experiences, thus driving growth.
Elsewhere, advertising revenues have seen significant downward pressure with several key clients having reduced spend in the quarter. The Raya period was especially muted on both TV & Radio, as clients opted for caution. Despite this market dynamic, Addressable Advertising, which brings digital-style targeting to TV and OTT, is on a promising trajectory as revenue tripled y-o-y. This innovative approach showcases the effectiveness of personalised advertising incapturing the attention of viewers and delivering measurable results for advertisers.
To further enhance our marketing and advertising strength, we are pleased to announce the appointment of Prashant Kumar as a new Independent Non-Executive Director, effective 1 July 2024. Prashant is a leading market futurist and digital maven in the Asia-Pacific region. He is the founder of Entropia and served as the President of IPG Mediabrands Asia.
Strengthening Content Offering
Astro has been collaborating closely with local producers, creating more job opportunities whilst also championing local talent thus ensuring that the stories we tell resonate deeply with Malaysian audiences. This goes beyond mere entertainment, with engaging storytelling that reflects positive cultural values and important narratives aimed at imparting lasting impact on its viewers.
One such success story is KHUN:SA, a drama that captivated audiences with its talented cast and compelling storyline on the social stigma of hermaphrodites in the local community. Garnering 6.0mn TV viewers and acombined 5.0mn streams On Demand and on Astro GO, KHUN:SA received rave reviews from both critics and fans.
Another triumph for Astro is Takdir Itu Milik Aku, an inspiring novel adaptation that delves into the resilient journey of a woman overcoming marital infidelity, constant humiliation, and ruthless challenges. This drama has become a cornerstone of Astro’s programming, captivating audiences with over 7.7 million TV viewers and a combined 7.9mn streams On Demand and on Astro GO. Its success has made it the top drama during Ramadan and Raya.
Astro’s commitment to champion growth within the content and media ecosystem is also evident. Movies like Sheriff and The Experts have driven significant footfall to cinemas with ticket sales reaching RM77mn at the box office. Upcoming releases such as Gold, Project Kahar, Malam Terlarang, Baik Punya Ah Long and #DONDUKUN are poised to continue this trend, drawing support from local moviegoers. On the Sports front, customers are enjoying all 51 matches of the UEFA Euro 2024 live in HD, alongside the new 2024/25 season of Liga Malaysia, with the Paris 2024 Olympics up next.
Following the accolade for "Best Use of AI in News Reporting" at Digital Media Asia 2024, Astro AWANI continues to lead in AI integration within its newsroom with the launch of JIWA:A Guideline for AI Utilisation. This initiative underscores Astro AWANI's commitment to leveraging AI capabilities to deliver high-quality and efficient news writing while upholding journalistic ethics. Astro AWANI has also maintained its reputation as the most trusted news brand in Malaysia, for the seventh consecutive year. According to the Reuters Institute Digital News Report 2023 and the University of Oxford, Astro AWANI ranked first with 64 percent followed by Radio Televisyen Malaysia (RTM) with a score of 63 percent, while four other news brands shared the third spot with 60 percent are Malaysiakini, Berita Harian, TV3 and TV9.
Beyond creating and promoting content, Astro is actively fighting piracy to protect livelihoods. From 2023 to May 2024, a total of 260K illegal links from various platforms including websites, social media platform, mobile chat applications such as Telegram and e-commerce sites have been removed, safeguarding jobs and the industry’s integrity.
In fact, in Q1FY25, Astro achieved a significant milestone in its partnership with the Commercial Crime Investigation Department of the Royal Malaysian Police (PDRM). A landmark operation successfully dismantled a locally operated illegal content server farm, marking a local first. Astro continues to work closely with other enforcement agencies as well as regional entities in the ongoing fight against digital piracy.
Affirming Our ESG Efforts
On our ESG front, Astro proudly launched the 2024 edition of the Astro Kem Badminton (AKB), spanning five locations across Malaysia. With the support of the Badminton Association of Malaysia (BAM), selected participants now have the unique opportunity to undergo national-level training. Since its inception, AKB has trained an impressive 21,300 children nationwide.
Revenue Softened with Free Cashflow of RM112mn
Astro navigated a challenging landscape in Q1FY25, especially in relation to advertising spend. Revenue softened to RM773mn q-o-q. The company reported a normalised PATAMI of RM25mn, excluding unrealised forex losses on transponder lease liabilities. In this quarter, the company generated free cash flows of RM112mn and remains proactive in its capital management.
Euan Smith, Group CEO of Astro remarked: "In FY25, our renewed focus spans three pillars: Grow New Customers by strengthening content offerings to engage our wider audience; Strengthen Adjacent Businesses by expanding sooka, Astro Fibre, Astro Enterprise, and Addressable Advertising, and Reduce Legacy Cost to ensure our products remain competitively priced against global players.
The launch of Astro Studios heralds an exciting new chapter for us. We're thrilled as this marks the point where our journey truly takes flight, firmly establishing Malaysia as a hub for outstanding content creation.
Before my arrival in Malaysia, global discussions about Malaysia as a destination for film and post-production were scarce. Yet upon arrival, I discovered a vibrant community of talented individuals producing exceptional work. It feels like a well-kept secret, and I believe it's time to change that perception.
Being in Malaysia, I consider myself Malaysian. I am passionate about showcasing our country's potential, comparing it favourably to global giants like Korea, Poland, and France. Astro Studios is our platform to build,showcase, and demonstrate what our industry can achieve.
Our creative expertise and strong ties within the Malaysian ecosystem enable us to consistently produce hit shows year-round. Our content portfolio spans live signature events, Astro Originals, dramas, local sports, news, and children's programming.
Our agility is evident in how we quickly adapt to current events, exemplified by initiatives emphasising humanitarian causes like the Malaysia4Palestine pop-up channel featuring 115 talents from Malaysia, Singapore, and Indonesia, and supported by RTM.
As we enhance our content, we've introduced value-added packs featuring staple content such as sports and local programming. Additionally, we're making sooka an essential entertainment companion, accessible on personal devices and televisions with our latest sooka TV Stick. With ongoing innovation in both content and technology, we are set to solidify our position as Malaysia's leading Entertainment and Streaming destination.”
