KUALA LUMPUR (Dec 14): Astro Malaysia Holdings Bhd posted a net loss of RM47.05 million for its third quarter ended Oct 31, 2023 (3QFY2024) — the satellite pay-TV operator's first ever loss-making quarter — compared with a net profit of RM5.80 million in 3QFY2023.

The swing to the negative territory was largely due to the voluntary separation scheme (VSS) exercise to reduce its headcount by 20% that cost the group RM52 million, Astro said in a bourse filing on Thursday.

The group's quarterly revenue also dropped 10.54% to RM828.55 million from RM926.18 million a year prior, due to lower contribution from its television segment and as the group exited its home-shopping business.

No dividend was declared for the current quarter under review. This marks the second consecutive quarter of no dividend for Astro’s shareholders, after the group in September revised its dividend policy to make yearly payouts from its consolidated profit after tax and non-controlling interests. Astro previously made dividend payments on a quarterly basis.

For the nine months ended Oct 31 (9MFY2024), Astro registered a net loss of RM7.51 million against a net profit of RM204.29 million in the same period last year. Besides the latest VSS cost, the group's earnings so far have been hit by higher operating costs and forex losses. Cumulative revenue dipped 5.62% to RM2.52 billion from RM2.67 billion.

Astro chief executive officer Euan Smith said despite the weaker performance reported for 3QFY2024, the group's strategic plans to transform Astro into a digital, streaming company are yielding results.

“Our new TV packs and broadband bundles have uplifted average revenue per user (ARPU) for the fourth consecutive quarter, by RM2.40 year-on-year (y-o-y) to RM99.80. Our adjacent businesses, Astro Fibre and sooka, are both on a positive growth trajectory this year despite the headwinds.

“As expected, streaming on Ultra and Ulti Boxes, and Astro GO continues to trend upward, with On Demand shows streamed rising 25% y-o-y to 589 million in 9MFY2024.

“Ultra and Ulti Boxes installations grew 30% y-o-y to 960,000, while Astro GO saw 545,000 monthly active users actively engaged and averaging a weekly viewing time of 3.4 hours,” he said.

Moving forward, the group cautioned that the strength of the US dollar continues to impact its business costs, while local economic conditions (exacerbated by geopolitical factors) and softening customer sentiments also present challenges to revenue growth.

“In response, we are introducing more affordable product entry points to drive product signups and support customers.

“The group maintains a cautious outlook and will carefully monitor business conditions and emphasise cost discipline,” it said.

Shares in Astro dipped 0.5 sen or 1.35% to close at 36.5 sen on Thursday, giving the group a market capitalisation of RM1.91 billion. The stock has dropped over 40% since the start of the year.