Chairman’s Statement

Chairman’s Statement

Tunku Ali Redhauddin Ibni Tuanku Muhriz

Chairman

Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present Astro Malaysia Holdings Berhad’s 2024 Integrated Annual Report. Astro’s pivot to being a digital, streaming company has brought about significant shifts.

We are reinventing our business model, resetting our legacy cost base and strengthening our product proposition. We must carve out a new, sustainable space within this vibrant media and entertainment landscape, even as cyclical market forces and piracy pose growth headwinds. It is incredibly encouraging to see our innovative digital solutions, in particular sooka and Addressable Advertising, making good headway as customers and clients discover their effectiveness, ease of use and value.

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GCEO’s Statement

GCEO’s Statement

Euan Smith

Group Chief Executive Officer

Dear Shareholders,

Astro is continuing the aggressive reset of our business, navigating an ambiguous and challenging operating environment. We are actively pivoting the company away from how Astro used to be perceived — linear channels, satellites, legacy operations — to being an on-demand, digital, streaming-first company with significantly reduced operating costs.

It is a journey common to Pay-TV operators around the world. The value extracted from this major pivot will be returned to customers in the form of better pricing and products, keeping our audience engaged and happy with Astro’s proposition. This reset will firmly position Astro as a lean, agile entity geared up to compete and thrive in the future, building on our reach of 5.3 million homes, 8,400 enterprises, 18.2 million weekly listeners on FM and online radio and the 15.6 million people that visit our digital brands every month.

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Sustainability

Astro's ESG website

Our sustainability framework aligns our value creation model with the established material matters, as shown below. This framework underpins our efforts towards the effective integration of sustainability Group-wide, conducting and growing our business in a responsible manner. Supported by a sound governance structure, we strategically link our material matters to Astro’s five ESG Pillars and three Strategic Drivers to encapsulate sustainability thinking. This enables us to incorporate sustainability commitments into our strategic business priorities.


We have set sustainability performance targets up to FY26, supported by initiatives to be undertaken over a three-year period. Meanwhile, work is underway for us to implement our Climate Roadmap that outlines our goals to carbon neutrality by 2040.

Responsible Business

Caring for our Environment

Voice for Good

Education for All

Community Development

Responsible Business

Good governance is at the core of being a responsible business. Our robust CG framework is essential in ensuring compliance with applicable laws and regulations for effective risk management.

We are committed to business integrity and transparency, diversity and inclusion, workplace safety, cybersecurity, and data privacy and integrity.

Caring for our Environment

Advocating for a greener planet, we are committed to carbon neutrality by 2040. We have developed a Climate Roadmap to guide us in reducing our overall GHG emissions over the short and longer term.

Voice for Good

Given our unique position as Malaysia’s largest media and content powerhouse, we aspire to be a Voice for Good by airing public service announcements (PSA) and ESG-related content across TV, radio, and digital platforms. Our goal is to deliver impactful messaging to influence and drive positivity in all the communities in which we are present.

Education for All

Education is critical to the long-term well-being of our future generation and to building our nation. We leverage our key differentiator – content, to provide access to quality education and supplementary learning materials for students, especially those in rural and remote communities.

Community Development

We aspire to build sustainable communities and create a lasting impact on society while providing emergency relief assistance when the need arises.

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Download Sustainability Performance Data Table

Group Financial Review

TV HOUSEHOLDS

Financial Year Ended 31 Jan ('000)

5,697
5,689
5,588
5,490
5,337
FY20
FY21
FY22
FY23
FY24

ARPU

Financial Year Ended 31 Jan (RM)

100.00
96.90
97.20
98.20
99.70
FY20
FY21
FY22
FY23
FY24

SHARE OF TV VIEWERSHIP

Financial Year Ended 31 Jan (%)

76
73
72
72
71
FY20
FY21
FY22
FY23
FY24

REVENUE

Financial Year Ended 31 Jan (RM m)

4,912
4,360
4,175
3,800
3,436
FY20
FY21
FY22
FY23
FY24

EBITDA

Financial Year Ended 31 Jan (RM m)

1,723
1,472
1,286
1,046
885
FY20
FY21
FY22
FY23
FY24

PATAMI

Financial Year Ended 31 Jan (RM m)

655
540
461
259
37
FY20
FY21
FY22
FY23
FY24

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    FY24 Quick Facts

    Homes

    5.3m (67%)

    TV households (Penetration)

    71%

    Share of TV viewership

    RM99.70

    ARPU

    1.1m

    Connected STB

    Individuals

    974k

    Linked customers on Astro GO

    1.7m

    sooka registered users

    18.2m

    Weekly listeners on FM and online radio

    15.6m

    Monthly visitors across our digital brands

    Enterprise & Adex

    8,400

    Enterprise customers

    30%

    Share of TV adex

    77%

    Share of radex

    2%

    Share of digidex

    Content

    10,200

    Content hours produced

    97,000

    On Demand videos

    793m

    On Demand shows streamed

    RM361m

    Local content investment

    Financials

    RM3.4b

    Revenue

    RM37m

    PATAMI

    RM637m

    Free cash flow

    0.25 sen

    Dividend per share

    Sustainability

    5.6%

    GHG emissions reduction (Scope 1 and 2)

    2,112 tCO2e

    Carbon avoidance in FY24

    13,100

    Educational On Demand videos

    9,700

    Voice for Good hours

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      Value Creation Model

      Input

      Input

      Intellectual Capital

      We are the largest content creator in Malaysia. Beyond intellectual property rights (IPs) related to content, our intellectual capital also includes our strong brand reputation, business processes, as well as systems, software, patents, trademarks, and proprietary information.

      Industrial Capital

      Our proven capabilities to produce, aggregate, and distribute content across TV, radio, digital, cinema and at on-ground events, leveraging our ready customer base and extensive market reach to Malaysian households, individuals and enterprises.

      Human Capital

      This comprises the collective knowledge, experience and expertise within our Group as we continue to nurture, hone and harness the diverse skill sets and expertise of Team Astro’s on- and off-screen talents while championing diversity and inclusion, creativity and accountability.

      Financial Capital

      This consists of the pool of funding that our Group has access to, derived from our cash-generative business as well as access to institutional lenders and financial markets. This is deployed towards reinvestment for future growth and dividends distributions.

      Social and Relationship Capital

      We establish strong relationships with our stakeholders, understanding and addressing their concerns in maintaining our social licence to operate. Our ESG efforts generate positive long-term impact for communities.

      Natural Capital

      We are committed to be carbon neutral by 2040 and have started executing on our Climate Roadmap to decarbonise and lower Astro’s carbon emissions. Mindful of our environmental footprint, we utilise natural resources responsibly through more sustainable business practices.

      • Intellectual Capital

      • Industrial Capital

      • Human Capital

      • Financial Capital

      • Social and Relationship Capital

      • Natural Capital

      Value Creation Process

      Value Creation Process

      Content

      Produce, aggregate, distribute, and monetise content across all platforms focusing on the best of local vernaculars, live sports, kids, news, regional and international content

      Products

      Leverage technology and data to deliver exceptional products and services to serve all customer segments through differentiated offerings catering to their diverse needs, preferences and spending propensities, and provide the best customer care

      Pay-TV

      sooka

      Streaming apps

      NJOI

      Broadband

      Radio

      Digital brands

      Content and connectivity

      Advertising

      Production

      Talent management

      Sustainability

      Create sustainable impact centred around Astro’s five ESG Pillars to address our material matters

      Responsible Business

      Caring for our Environment

      Voice for Good

      Education for All

      Community Development

      Content

      Produce, aggregate, distribute, and monetise content across all platforms focusing on the best of local vernaculars, live sports, kids, news, regional and international content

      Products

      Leverage technology and data to deliver exceptional products and services to serve all customer segments through differentiated offerings catering to their diverse needs, preferences and spending propensities, and provide the best customer care

      Sustainability

      Create sustainable impact centred around Astro’s five ESG Pillars to address our material matters

      FY24 Output

      FY24 Output

      Strengthening our ecosystem

      Growing our customer reach and content creation capabilities amid industry changes and ongoing acts of piracy for business sustainability

      Market Reach

      5.3m

      TV households

      67%

      Household penetration

      8,400

      Enterprise customers

      18.2m

      Weekly listeners on FM and online radio

      15.6m

      Monthly visitors across our digital brands

      Enhancing shareholder value

      Delivering positive operational performance and rewarding shareholders through dividend distributions

      Financials

      RM3.4b

      Revenue

      RM37m

      PATAMI

      RM637m

      FCF

      34%

      FCF yield

      RM13m

      Dividend

      0.7%

      Dividend yield

      Supporting the local economy

      Contributing to the Malaysian economy and local media industry

      Government & Industry

      RM52m

      Corporate tax payment

      RM1.3b

      Payment to local vendors

      Content

      10,200 hours

      Local content produced

      RM361m

      Local content investment

      ESG-focused corporate citizen

      Operating responsibly and contributing to the betterment of our talent, community and environment

      Talent

      2,887

      Employees

      RM493m

      Employee cost

      10.3

      Average learning hours

      2,232

      Employee volunteer hours

      Community

      13,100

      Educational On Demand videos

      RM131m

      Investment in educational and learning content since 2012

      Environmental

      2,112 tCO2e

      Carbon avoidance from solar photovoltaic system and Green Energy Tariff (GET) subscription

      5.6%

      GHG emissions reduction (Scope 1 and 2) towards Carbon Neutral 2040

      Strengthening our ecosystem

      Enhancing shareholder value

      Supporting the local economy

      ESG-focused corporate citizen

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      Strategic Priorities

      Content

      Products

      Sustainability

      Cost Management

      Content: Champion local content and live sports while aggregating the rest

      Moving forward:

      • Uphold our role as a responsible content provider, curating a diverse content portfolio to cater to audience demand across various genres, languages and platforms
      • Maintain our position as Malaysia’s leading content creator by producing captivating, high-quality local content, emphasising signatures, Astro Originals, movies, kids and news content
      • Focus on innovation to introduce new genres and formats to delight both new and existing viewers
      • As the Home of Sports in Malaysia, champion high-quality, extensive coverage of key live global and Malaysian sporting events including Liga Malaysia
      • Advocate for equal access to quality education for all by offering entertaining academic learning content
      • Strategically capitalise on 360° content experiences with monetisation opportunities, encompassing advertising, on-ground ticketed events, merchandising, music and talent
      • Collaborate with partners to elevate local productions and talent
      • Aggregate the best of international and regional shows, incorporating more premium content and lifestyle apps

      Products: Deliver exceptional products and services by leveraging technology

      Moving forward:

      • Serve differing customer segments – homes, individuals and enterprises – by offering one-stop entertainment, connectivity and advertising solutions to meet their diverse needs and requirements
      • Accelerate the growth of sooka via attractive packages and price points, refreshed marketing and content line-up, including the addition of FAST channels
      • Expand and refine our premium Pay-TV offering and bundled value proposition
      • Strengthen NJOI with more premium HD content for a better viewing experience and simpler pack options
      • Connect more Malaysian homes and businesses through our own Astro Fibre broadband service
      • Grow enterprise customers with flexible content and connectivity solutions
      • Drive adoption of Addressable Advertising, leveraging our unique position as the largest media player in Malaysia
      • Sustain market leadership in the audio sphere, both on FM and online radio
      • Digitalise and simplify products and processes to enhance customer experience and deliver a seamless customer journey
      • Enrich and harness first-party data across touchpoints to optimise business outcomes
      • Enhance and refine UI / UX and product functionalities, focused on improving personalisation, curation and recommendations
      • Harness technology to manage piracy across all platforms through various piracy countermeasures

      Sustainability: Create a sustainable impact on our five key ESG Pillars

      Moving forward:

      • Advocate for a greener planet to raise climate awareness and act as an agent for positivity to amplify community messages through Voice for Good content across all platforms
      • Sustain and enhance our environmental initiatives to minimise our environmental footprint, including being carbon neutral by 2040
      • Execute Climate Roadmap to guide our businesses in decarbonising and reducing carbon emissions, targeting a 10% reduction in Scope 1 and 2 emissions by FY26 (from FY20 baseline)
      • Emphasise responsible and mindful resource consumption, including electricity and water use across our office premises
      • Drive community initiatives with a focus on equal access to education and social well-being, including Astro Hostels and Astro Kem Badminton
      • Pursue new opportunities to inspire and support our community
      • Continue our scholarship programme, providing tertiary education opportunities for B40 students
      • Encourage staff volunteerism and participation in community efforts, including providing emergency aid and manpower to communities and families affected by disasters

      Cost Management

      Moving forward:

      • Reset legacy cost base to reflect the current realities of the Pay-TV industry
      • Encourage adoption of flexible, asset-light business model
      • Re-engineer processes and systems to deliver a step change in unit cost
      • Streamline operations and simplify organisational structure by deploying technology and digital to promote greater business agility and improve operational efficiencies
      • Expand successful projects already delivered in automation and machine learning and pursue further digitisation opportunities
      • Undertake detailed assessments of project portfolios across all business units to prioritise financial and human capital investments
      • Conduct robust business case evaluations on all key opportunities to ensure feasibility of strategic intent and project economics

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      Virtual Twelfth Annual General Meeting

      Day, Date & Time

      Wednesday, 26 June 2024 at 2pm

      Meeting hosted virtually at

      https://investor.boardroomlimited.com

      Add to Calendar

      Enquiries

      If you have any enquiries prior to the AGM or need technical assistance to participate in the virtual AGM, please contact Boardroom Share Registrars Sdn Bhd during office hours from Monday to Friday (8.30 a.m. to 5.30 p.m). Boardroom's contact details are as follows:

      Tel:

      +603 7890 4700 (Helpdesk)
      +603 7890 4716 (En. Mohamed Sophiee bin Ahmad Nawawi)
      +603 7890 4704 (Cik Nur Atiqah binti Mohd Arif)

      Email:

      [email protected]
      [email protected]
      [email protected]

      Fax:

      +603 7890 4670

      Downloads

      Integrated Annual Report 2024

      Integrated Annual Report 2024 (Low res)

      Audited Financial Statements 2024

      Corporate Governance Report 2024

      Circular to Shareholders

      Notice of the Twelfth AGM

      Administrative Guide

      Proxy Form

      For previous Annual Reports and other documents:

      Astro's Corporate Website