New TV packages a boon to Astro in 2QFY23
KUCHING: Astro Malaysia Holdings Bhd’s (Astro) net profit for its second quarter of financial year ended July 31, 2022 (2QFY23) rose 13 per cent to RM98.47 million from RM87.13 million from the same quarter last year.
However, its revenue fell to RM921.12 million from RM1.06 billion previously. The group said the recovery in consumer sentiment remained uneven due to inflationary pressures from heightened geopolitical events and global supply chain disruptions.
However, the rise in net profit was underpinned by cost discipline. Group chief executive officer Henry Tan said the recent TV packages for the streaming world were attracting both new and existing customers, while the group enterprise business saw more food and beverage (F&B) outlets and hotel subscriptions, buoyed by the reopening of the economy.
“As part of our streaming aggregation strategy, we have added beIN SPORTS CONNECT, iQIYI, and TVBAnywhere+ apps on the Ultra Box, and Disney+ Hotstar app on the Ulti Box to give our customers greater convenience through a single platform. BBC Player and Zee5 apps will soon join our seven existing streaming services, further strengthening Astro as the go-to entertainment destination for Malaysians.
“We have also introduced multi-user profile and thumbnail viewing as well as voice search on Astro GO allowing for better personalised content recommendations,” he said.
Public Investment Bank Bhd (Public IB Research) said Astro is expected to further invest in local content development to build and strengthen its online, digital and broadband businesses.
“This is because local and vernacular content remains a key contributor to Astro’s strength, accounting for two-thirds of its audience viewing,” it commented on Astro’s performance.
“Meanwhile, as over-thetop (OTT) services continue to dominate the entertainment needs of more Malaysians, we are also expecting Astro to focus more on investment in global streaming services.
“As such, more OTT services are likely to be aggregated onto its platform in the near term. By the end of this year, three to five OTTs are expected to be added onto its portfolio of global streaming services which includes Netflix, Disney+ Hotstar, iQIYI and HBO GO.”
However, Public IB Research warned that a consolidation of OTT providers in the US is imminent given the intense competition and a more saturated market.
“Therefore, in our view, Astro’s strategy of being a superaggregator may not necessarily translate to a more favourable pricing for its subscribers in the future.”
AmInvestment Bank Bhd (AmInvestment Bank) viewed Astro’s outlook to be unexciting in the near-term due to tepid consumer sentiments. This will, however, be cushioned by increased adex spending associated with major sporting events taking place this year, such as UEFA Champions League and FIFA World Cup.