Amid the known macroeconomic headwinds and foreign currency volatility, Astro posted revenue of
RM829mn in Q3FY24, with Adex registering positive quarterly growth of 13% while NORMALISED
PATAMI closed at RM42mn [excluding the recent Voluntary Separation Scheme (VSS) costs and
unrealised forex losses on transponder lease liabilities]. Astro generated free cashflows of RM158mn,
up 23% y-o-y.

Euan Smith, Group CEO of Astro said: “Our strategic plans to transform Astro into a digital, streaming
company are yielding results. Our new TV packs and broadband bundles have uplifted ARPU for the
fourth consecutive quarter, by RM2.40 y-o-y to RM99.80. Our adjacent businesses, Astro Fibre and
sooka, are both on a positive growth trajectory this year despite the headwinds. Our broadband base
increased by 22% y-o-y while sooka monthly active users (MAU) rose over 80% q-o-q while its
subscriber base grew 50% q-o-q driven by an increased content library, a new pricing model and
enhanced targeted marketing. Meanwhile, our enterprise business increased 14% y-o-y as the F&B
industry continues its recovery from the COVID-19 years.”

“As expected, streaming on Ultra and Ulti boxes, and Astro GO continues to trend upward, with On
Demand shows streamed rising 25% y-o-y to 589mn in 9MFY24. Ultra and Ulti Boxes installs grew 30%
y-o-y to 960k while Astro GO saw 545k monthly active users actively engaged and averaging a weekly
viewing time of 3.4 hours.”

“As previously announced, in Q3FY24, Astro completed a VSS programme, another key delivery within
our ongoing programme to transform the legacy cost base. As a result of the exercise, the company
reduced headcount by 20%. The cost of this exercise, RM52mn, is booked in this quarter and estimated
payback will be under a year. The Group also exited the home shopping business so that its resources
can be invested into the business lines that are delivering growth,” added Euan.

Key Highlights

1. Live sports, Astro Originals and movies winning and keeping fans

• Premium local signature, All Stars Gegar Vaganza remained the standout No.1 show in Malaysia, with its finale garnering over 2.3mn TV viewership and grossed RM1.2mn ticket sales, while Sepahtu Reunion Live garnered TV viewership of 827k with 1.9mn shows streamed.

• Astro enhanced its position as the No.1 film producer in Malaysia with movies grossing over RM103mn year-to-date, a huge 77% share of the local box office. Malbatt: Misi Bakara, Astro’s latest movie grossed over RM32mn in the quarter.

• Astro’s commitment to champion Liga Malaysia continues to pay off, with TV audience for Piala Malaysia and Piala FA each attracting over 5mn viewers.

2. Strong Adex Performance

• Astro posted a 13% quarterly improvement in Adex to RM98mn in Q3FY24, mainly due to stronger TV Adex performance driven by the signatures and originals that premiered in this quarter. Radex, TV Adex and Digital Adex market shares in the quarter stood at 78%, 31% and 2% respectively. Astro Radio brands continue to rank No.1 across all languages, registering 17.6mn weekly listeners on FM and online. A pioneer in innovative Addressable Advertising, Astro is driving tangible business results with its Addressable Advertising revenue increasing by 150% y-o-y, and the number of clients onboarded having almost tripled.

3. sooka offers more value with new pricing and packages

• sooka has grown exponentially since it was first launched, and again increased over 80% q-o-q to
1.5mn MAU, 84% of which are on mobile.

• With its new promotional pack pricing, new features, and increasing library of premium content including extensive LIVE sports and popular children’s shows, sooka offers ever greater value with amazing flexibility.

• And the sooka content slate continues to grow, with more Chinese and Korean content and 15 Free Ad-supported Streaming TV (FAST) channels having recently launched 4. Strong anti-piracy actions.

• For the common good of the entertainment industry and to protect the rights of paying customers, Astro continues to work closely with the authorities and industry stakeholders to ensure that anti-piracy measures are effectively enforced. Year to date, 12 individuals have been charged and fined for copyright infringement and for selling TV boxes pre-loaded with unauthorised Astro content.

5. Our commitment towards sustainability

• As part of its commitment to be a Voice For Good, Astro aired over 6,100 hours of Public Service  Announcements (PSAs) year to date in FY24 to amplify positive messages on key environmental, social, civic and governance issues. 

• As part of our advocacy for a greener planet, Astro organised the RimbaKita Run/Walk to increase awareness towards environmental protection and forest conservation. Proceeds from the event
were channelled towards the support of forest conservation by adopting 27 trees at Taman Tugu.

• Our grassroot development programme, Astro Kem Badminton (AKB), which trained over 1,600 kids this year, signed an MoU with Badminton Association of Malaysia (BAM), marking a collective commitment to identify and train talents via AKB in 2024.

Outlook

Our transformation journey sees us pushing Astro aggressively to be Malaysia’s No. 1 Entertainment and Streaming Destination. Investments are firmly focused on our long-term and sustainable growth that will encompass:

• elevating local content, which is Astro’s clear competitive advantage, with high quality production and fresh storytelling via Astro Originals, signatures and movies;

• ‘loving’ our customers by consistently delivering outstanding memorable content that they deserve in an intuitive, convenient way; (our customer service satisfaction has improved materially over the last 12 months);

• accelerating the growth of our adjacent businesses; sooka, Astro Fibre, Enterprise and Addressable Advertising, targeting both current and new market segments with increased value and flexibility; and

• transforming legacy cost structures to reflect the new realities of the local Pay-TV market, mirroring global trends.

Ongoing strength of the USD continues to impact cost lines in our business, whilst local economic conditions (exacerbated by geopolitical factors) and softening customer sentiments also present challenges with regard to revenue growth. In response, we are introducing more affordable product entry points to drive product signups and support customers.

The Group maintains a cautious outlook and will carefully monitor business conditions and emphasise
cost discipline.