KUALA LUMPUR (June 25): Astro Malaysia Holdings Bhd (KL:ASTRO) reported a 7% increase in net profit to RM17.01 million for the first quarter ended March 31, 2024 (1QFY2025), up from RM15.9 million in the same period last year, due to lower net financing costs.

The lower net financing costs were due to favourable unrealised forex arising from unhedged lease liabilities.

Earnings per share improved to 0.33 sen compared to 0.30 sen previously. However, the company's revenue saw a decline of 9.85% to RM772.53 million from RM856.94 million, attributed to lower subscription and advertising revenues, according to its bourse filing.

Astro did not declare any dividend for the quarter under review.

This is Astro’s second consecutive quarter of net profit after recording a net loss of RM47.05 million in 3QFY2024, its first quarterly loss since listing.

On prospects, Astro highlighted challenges such as the impact of a strong US dollar on various operational costs, local economic conditions strained by geopolitical factors as well as subdued consumer sentiment, which will continue to affect the industry.

In a statement, Astro chief executive officer Euan Smith outlined strategic initiatives to sustain growth, including expanding its customer base through enriched content offerings to engage a broader audience.

The company also plans to strengthen adjacent businesses by expanding sooka, Astro Fibre, Astro Enterprise and addressable advertising, as well as reduce legacy cost to ensure its products remain competitively priced against global players, he said.

“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. Astro Studios is our platform to build, showcase, and demonstrate what our industry can achieve.

"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,” Smith added.

Shares of Astro closed unchanged at 34 sen on Tuesday, giving the company a market capitalisation of RM1.75 billion.

Uploaded by Magessan Varatharaja