KUALA LUMPUR (Oct 1): Advertising expenditure pressures at Astro Malaysia Holdings Bhd (KL:ASTRO) show no sign of easing after the pay-TV operator reported a weaker-than-expected quarter, TA Securities said in its final report on the company before ceasing coverage.
Astro posted a core net loss of RM1 million for the second quarter ended July 31, 2026 (2QFY2027), which was below expectations, TA Securities said in a note on Thursday.
The research house said Astro’s revamp under Astro One has also fallen short of delivering the expected uplift in subscriptions. Instead, the strategy has resulted in cannibalisation as customers shift to lower-priced tiers, leading to subscriber attrition and lower average revenue per user (ARPU).
TA Securities kept its “sell” recommendation and target price of six sen.
Shares of Astro were unchanged at 5.5 sen at the time of writing on Thursday, with about 18 million shares changing hands. The stock has fallen 45% since the start of the year, erasing RM235.8 million from the company’s market value.
At 5.5 sen, Astro has a market capitalisation of about RM288.3 million.
After TA Securities ceases coverage, only three research houses will cover Astro, with two “hold” ratings and one “sell” call, according to Bloomberg data.
TA Securities said it remains cautious on Astro’s recovery prospects, citing persistent weakness in its subscriber base and challenging macroeconomic conditions.
While management expects ARPU to stabilise, it is pursuing several transformation initiatives, including strengthening local content, expanding adjacent businesses such as sooka, Astro Fibre, enterprise solutions and addressable advertising, as well as streamlining its legacy cost structure.
The research house said it will maintain a cautious stance until there are clearer signs of a recovery in Astro’s subscriber base.