Due to higher intangible asset amortisation, Astro Malaysia Holdings Bhd’s net profit fell by 76% year over year (YoY) to RM23.65 million in the second quarter (Q2) ended July 31, 2023 (FY24).
Lower earnings were also a result of higher net finance costs, which were brought on by unfavourable unrealised FX loss resulting from unhedged lease liabilities.
As compared to Q2FY23, Astro’s revenue for the quarter decreased 5.6% to RM869.82 million from RM921.12 million, mostly due to a decline in subscription income and retail sales.
Also, the company’s net profit for the six-month period fell by 80% to RM39.55 million from RM198.48 million in the same period last year.
From RM1.88 billion a year ago to RM1.76 billion, the group’s revenue fell 6.5%.
According to Group Chief Executive Officer Euan Smith, the company is working hard to become Malaysians’ preferred source for streaming and entertainment in the future.
“Content is our primary competitive edge, and we are committed to investing in it. More should be spent developing and advancing the top talent in the local content scene.
We are reinventing our content offering to meet the growing demand for high quality local content across screens and genres, according to Smith, “from the fresh storytelling of Astro’s Originals to the new format reality competition show such as Battleground Malaysia Road To Gold and the use avatar news anchors, Joon and Monica.”
Furthermore, the corporation is aware of the long-lasting macroeconomic headwinds that still exist, as well as the strength and volatility of the US dollar, the seismic shift in the global sector, and continued challenges from rising living costs.
Smith stated, “We maintain a cautious perspective and will vigilantly watch market conditions while judiciously controlling costs.
