More Malaysians are watching Astro on TV and on mobile
Astro on the Go registered users +31% YoY
Result highlights for the nine months of the financial year ending 31 January 2017
• Revenue +3% y-o-y to RM4.2bn
• EBITDA -4% y-o-y to RM1.4bn
• PATAMI +16% y-o-y to RM479mn
• FCF of RM1.0bn
• Third interim dividend of three sen per share
KUALA LUMPUR, 7 December 2016 – Astro Malaysia Holdings Berhad (Astro) announced today its results for the nine months of the financial year ending 31 January 2017, with e-commerce and Adex driving growth in revenue and PATAMI. The decrease in EBITDA is mainly due to investment in key sports content and currency depreciation impacting content costs.
Tun Zaki Azmi, Chairman of Astro said, “The Group continues to execute against its strategic imperatives to deliver long-term shareholder returns and progressive dividend policy. In line with our progressive dividend policy, the Board is pleased to declare a third interim dividend of 3 sen per share, 9% higher compared to the same period last year.”
Dato’ Rohana Rozhan, Group Chief Executive Officer of Astro said, “We are seeing growth in our reach and engagement across all our platforms. Our TV service reaches 70% of Malaysian households at 5mn (Pay TV: 3.4mn| NJOI: 1.6mn). Our OTT and On Demand (OD) offerings continue to resonate with Astro on the Go (AOTG,) which saw its registered users increase to 1.1mn (+ 31% YoY) and an average viewing time of 130 minutes weekly, while our OD service is registering 600k video downloads per month. Our social media platforms now engage 5.1mn unique viewers monthly. Astro Gempak, our Malay entertainment platform, is Malaysia’s top YouTube channel with a growing 1mn audience and a total of 625.5mn total views.”
Premium and Differentiated Content
TV viewership share rose 1 percentage point to 77%, as Astro continues to offer the most comprehensive and compelling content proposition to Malaysian viewers, with a focus on original signature IPs, local and ASEAN movies, same day/date global windows, live music events and sports like Premier League, La Liga and F1 as well as eSports, international blockbuster movies, hottest Korean entertainment and an increasingly digital content and socialisation.
Astro’s vernacular content continues to resonate with Malaysians. Suri Hati Mr. Pilot, attracted a record-breaking 5.1mn TV viewership and 4.6mn YouTube views and Gegar Vaganza 3 achieved TV viewership of 4.5mn. Local animation, Didi & Friends, also made waves with its highly popular merchandise and music videos generating over 265mn views on YouTube.
Tulus Ikhlas won the ‘Best Single Drama or Telemovie’ award at the 21st Asian Television Award while Arena Cahaya, the theme song for OlaBola, was awarded the Best Original Film Song at the prestigious 53rd Golden Horse Awards in Taipei. This reinforces and drives the group’s relevance among advertisers with an Adex growth of 13% YoY to RM524mn while Astro’s share of TV Adex and Radex rose to 37% and 73% respectively. ARPU grew 0.6% YoY to RM99.9 underpinned by higher take-up of value added products and services.
Astro Go Shop
Go Shop continues to grow from strength to strength, serving 691k customers (+61% YoY) with revenues of RM201mn in 9MFY17, an increase of 59% YoY. To further extend Go Shop’s reach and scale, it has partnered with StarHub Cable Vision Ltd to launch its e-commerce service to serve 5.5mn Singaporeans.
Winning over Millennials
Astro is also ideating digital content preferred by the millennials. In collaboration with PGL, eGG Network successfully organised Malaysia’s first multilingual eSports championship, Counter Strike: Global Offensive (CS:GO) Minor Championship Asia in October 2016, where the tournament was broadcast on OTT platforms globally in six languages, attracting 1.5mn unique viewers.
Tribe OTT service is on course to build a community for the millennials in the region with its December launch in the Philippines, following its launch in Indonesia in March 2016. Through its partner in the Philippines, Globe Telecoms Inc., Tribe aims to create an immersive experience for different fandoms and connect them with their own ‘tribe’.
Building digital capabilities
Astro recognises that digital has brought about unprecedented democratisation of consumer choice, and has advanced its digitalisation aspiration across its platforms, products and services, as well as in building up its analytics capabilities and customer intelligence, to better serve its connected and mobile customers.
Dato’ Rohana said, “We are accelerating our product and service innovations by leveraging on new technology platforms and digital infrastructure in conjunction with global technology partners like Amazon and Microsoft Corporation. Astro is also working with Amazon Web Services to migrate our enterprise workload to the cloud, increasing our agility and scalability to meet new customer demands while at the same time, inculcating a strong innovation culture within our group.
All our digital services are now accessible on mobile devices. With the launch of the new and improved AOTG this month, all Astro customers can look forward to an improved intuitive user interface and more personalized features.”
Dato’ Rohana continued, “We are honoured to be recognised as the best in Asia for talent management at CNBC’s 15th Asia Business Leader Awards as Team Astro’s talent, both on and off air, remains our key differentiator and asset, in which we are committed to invest, nurture and grow.”