KUALA LUMPUR, Dec 14 — Astro Malaysia Holdings Bhd turned red with a net loss of RM47.05 million during the third quarter (3Q) ended October 31, 2023, compared to a net profit of RM5.80 million in the corresponding quarter last year.
Revenue narrowed to RM828.55 million from RM885.39 million previously, dragged by a reduction in subscription revenue, partially offset by an increase in advertising revenue and licensing income, it said in a filing with Bursa Malaysia today.
For the cumulative nine months of the financial year 2024 (9M 2024), the group recorded a net loss of RM7.51 million against a net profit of RM204.29 million last year, while revenue dropped to RM2.52 billion from RM2.67 billion previously.
In a statement, Astro Group chief executive officer Euan Smith said the company’s strategic plans to transform it into a digital, streaming company are yielding results.
“As previously announced, in 3Q FY2024 Astro completed a voluntary separation scheme (VSS) programme, another key delivery within our ongoing programme to transform the legacy cost base.
“As a result of the exercise, the company reduced headcount by 20 per cent. The cost of this exercise, RM52 million, is booked in this quarter and estimated payback will be under a year,” he said.
In addition, Smith said the group also exited the home shopping business so that its resources could be invested into the business lines that are delivering growth.
On prospect, the group maintained its cautious outlook and will carefully monitor business conditions and emphasise cost discipline.
“Our transformation journey sees us pushing Astro aggressively to be Malaysia’s No. 1 entertainment and streaming destination.
“Investments are firmly focused on our long-term and sustainable growth that will encompass local content, accelerating the growth of adjacent businesses, and transforming legacy cost structures to reflect the new realities of the local Pay-TV market, mirroring global trends,” said the group. — Bernama
