KUALA LUMPUR (June 16): The road to recovery for Astro Malaysia Holdings Bhd (KL:ASTRO) remains fraught with challenges, analysts warned after a weaker-than-expected quarter.
Astro’s revamp under Astro One has fallen short of delivering the expected lift in subscriptions, TA Securities said. Instead, the package has led to cannibalisation as customers shift to lower-priced tiers, resulting in subscriber attrition and dilution in average revenue per user, the house noted.
“We remain cautious, as macroeconomic headwinds and subdued consumer sentiment could weigh on growth prospects and slow the progress of Astro’s transformation initiatives,” TA Securities said in a note.
Shares of Astro, meanwhile, lingered just marginally above its all-time lows at six sen on Tuesday post-results. Astro has fallen 40% since 2026 began but the decline stretches back far longer.
A downward spiral from its peak in 2014 has wiped out nearly 97% of its market value to just RM314 million on Tuesday. Analysts' consensus on its outlook for the next 12 months remains bearish with zero ‘buy’, two ‘sell’ and two ‘hold’ calls.
Astro 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 loss of broadcasting rights for the Fifa World Cup has also cut Astro off a key tool for subscriber acquisition and retention, Kenanga Investment Bank said.
Apart from a structurally high cost base that includes legacy obligations such as long-term satellite transponder lease payments, Astro is also facing headwinds from rising competition from music streaming platforms offering personalised content and targeted advertising, the house flagged.