Astro cites local content strength as profit slides in FY27 opening quarter

Astro Malaysia Holdings has kicked off FY27 with what it described as a resilient performance, underpinned by strong engagement with local content and continued growth in streaming.

However, the media company continues to face pressure from declining subscription revenue, softer advertising contributions and changing consumer spending habits.

For the first quarter ended 30 April 2026, Astro recorded revenue of RM659.6 million, down 6.2% from the same period a year earlier, reflecting lower contributions from subscriptions, advertising, film and production services.

Net profit declined 97.8% to RM0.3 million from RM13.5 million previously, mainly due to weaker EBITDA (earnings before interest, taxes, depreciation, and amortisation) and higher financing costs resulting from unrealised foreign exchange losses on unhedged lease liabilities.

The group said local and vernacular content remained a key driver of engagement, accounting for 84% of total viewing across its platforms.

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Several Astro-produced titles also found audiences beyond its owned channels, with six shows appearing in Netflix Malaysia's top 10 rankings. These included Good Boys Go To Heaven, Bapa Mentuaku Mafia, One Cent Thief: Season 2, Generasi Perfect 10, Thariq Rizwan and Bahagia Tertangguh.

Astro Shaw also delivered two box office successes during the quarter. Malaikat Malam generated RM14 million in ticket sales, while Tarung: Unforgiven grossed RM23 million.

The company also pointed to strong festive engagement during the Chinese New Year and Hari Raya periods. Drama series Andai Itu Takdirnya 2 generated 131 million views, while coverage of the high-profile #BellaSyedYes engagement drew 130 million views across Astro's platforms.

Beyond content, Astro continued to strengthen its streaming ecosystem. Streaming platform Sooka recorded a 29% year-on-year increase in VIP paying subscribers, while total minutes streamed rose 48% to nearly two billion. Monthly active users reached approximately 975,000.

Despite these engagement gains, the broader business environment remains challenging. Astro's average revenue per user (ARPU) declined to RM93.90 from RM98 a year ago, as the company continued efforts to improve affordability and retain subscribers through lower-priced offerings and bundled content packages.

Advertising revenue also remained under pressure amid ongoing shifts in spending towards digital platforms, although Astro said its radio business remained resilient.

In detail, Astro's subscription revenue fell 8% from RM583.6 million to RM536.2 million, while advertising revenue came in at RM29.6 million, an 18% drop from RM36.1 million in the reflecting quarter a year ago. 

Group chief financial officer Grace Lee said consumers continue to face cost pressures and are becoming increasingly selective with spending.

Looking ahead, Astro said it will continue investing in content and streaming while expanding adjacent businesses such as Sooka, digital advertising, enterprise solutions and Astro Shaw. The company also emphasised disciplined cost management as it navigates an increasingly competitive entertainment landscape shaped by global streaming players and evolving audience habits.

Two weeks ago, Astro announced that its group chief executive officer (CEO), Euan Smith, stepped down after six years with the company, marking a new leadership transition for the media and entertainment group.

In a Bursa announcement, Astro said Smith's departure comes as the company's platform transformation progresses, with the board deeming it an appropriate time for a change in leadership to guide the business through its next phase.

Smith joined Astro in April 2020 as group chief operating officer and CEO of TV before being elevated to the role of group CEO in February 2023. During his tenure, he led the company through a period of significant industry change as audiences increasingly shifted towards digital and streaming platforms.

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