Astro reports 5% revenue growth despite soft market but warns of ‘more challenging’ 2016

Astro logoMalaysian pay-TV firm Astro has reported a five per cent increase in revenue, to RM4.1 billion ($955m), amid a tough economic environment, but the company’s CEO has warned that 2016 will be an even tougher year given high sports rights costs and the low valuation of the ringgit.

In its nine-month results for the financial year ending 31 January 2016, Astro saw EBITA – the truest measure of a company’s growth – rise by eight per cent to RM1.4 billion.

Over the nine-month period, the company added 218,000 new subscribers, with most growth coming from the free service Njoi. Astro now has 3.5m paid subscribers and 1.2m users of Njoi. The company now reaches 66 per cent of Malaysian households, up from 62 per cent a year ago.

Its on-demand service, launched in October, its e-commerce platform Go Shop and well received movies were among the contributing factors to the company’s solid performance.

Astro’s key performance indicators:

Astro key performance indicators

Astro CEO Dato’ Rohana Rozhan commented: “We remain focused on growing our customer base, and addressable audience by providing best in class products, services and experiences at compelling value to all. Our NJOI customers can also now watch 9 channels on AOTG. In 2016, our customers can look forward to a great sporting year with two major events, UEFA EURO 2016 and the Rio 2016 Olympics.”

“We continue to proactively manage new business realities, making disciplined choices across our portfolio to ensure market leadership and sustainable growth. 2016 will be a more challenging year with higher sports cost and a volatile foreign exchange environment. However, we are committed to delivering our dividend policy,” she said.

Astro is one of Asia’s more progressive pay-TV companies, having introduced a new measurement system, DTAM, in July to improve upon an existing system that COO Henry Tan has criticised for its inaccuracy.


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