KUALA LUMPUR (June 15): Astro Malaysia Holdings Bhd (KL:ASTRO) flagged another tough year as the pay-television operator ramps up efforts to stem subscriber losses after a bruising quarter.
For the first quarter ended April 30, 2026 (1QFY2027), Astro's net profit plunged 88% to RM1.56 million from a year earlier. The company was in the black only because of a tax credit of RM4.5 million, having already recorded a loss before tax during the quarter.
The company also incurred higher set-top box costs and increased staff-related expenses, including severance payments. Revenue, meanwhile, was down 6.2% year-on-year decline to RM659.62 million mainly due to lower subscription income.
"The operating environment remains challenging as consumers continue to navigate cost pressures and make increasingly selective spending decisions,” said Astro chief financial officer Grace Lee.
Astro Malaysia has tried everything, from offering discounts to cutting content costs, and from digitising its offerings to attracting new subscribers and reducing its workforce to save expenses.
Competition remains intense from online streaming giants like Netflix, as well as from changing consumer habits, particularly among younger audiences who spend most of their time consuming free content from social media platforms such as TikTok and YouTube.
The plan is to keep expanding the volume and variety of content available in its lower-tier packages while lowering entry-level pricing across both Astro and its streaming platform Sooka to attract and retain customers, the company said after announcing its latest quarterly results on Monday.
"At the same time, we are accelerating our adjacent businesses — Sooka, Enterprise, Digital and Social Advertising, and Studios — targeting wider market segments with greater flexibility, while transforming legacy cost structures to support this growth strategy," Astro added.
No dividend was declared during the current quarter under review.
Shares of Astro closed unchanged at six sen on Monday, giving the company a market capitalisation of RM313.6 million. The stock has fallen about 40% year to date.