Astro grows by 24% in PATAMI to RM 771 million

Astro showed resilience in a challenging market throughout the year, outperforming local and international peers with a 24% year-over-year growth in PATAMI to RM771 million, mainly due to higher EBITDA and favourable forex gain.


Astro

Customers: Increased Reach and Deeper Engagement

 

Astro’s total customers grew by 7% year-over-year from 5.1 million to 5.5 million, an increased TV household reach from 71% to 75% in FY18, primarily driven by NJOI. At the same time, NJOI’s revenue grew by 21% year-over-year to RM100 million, as its skinny bundles and ala carte prepaid choices gained traction. Pay TV remains resilient despite competition, with global best in class churn of 9.6%, ARPU of RM99.9 and incoming ARPU of RM67.7.

 

Adex: Achieved Growth in a Soft Market

 

Total Malaysia’s Adex declined by 8% year-over-year from RM4.9 billion to RM4.5 billion. Astro’s total Adex however, registered a 2% growth year-over-year from RM705 million to RM722 million. This includes Digital Adex which grew 17% from RM30 million to RM35 million. This leads to a share of 44% and 74% in TV Adex and Radex respectively. This trajectory is expected to continue with focussed efforts on providing solutions to both agencies and advertisers alike, driven increasingly by customer persona data.

 

Content: Focused on Vernacular, Nusantara Premium Originals and Live Sports

Rohana said, “Our content cost of RM1.6bn in FY18 was 33% of our TV revenue and was within our guidance of between 32% and 35%. In major sporting years such as 2018, content cost is expected to be approximately two percentage points higher. In light of global competition, we have renegotiated key international content to ensure we aggregate choice content for our customers, encompassing all the requisite rights for On Demand, increased portability and box sets whilst securing better economics given these rights are rapidly being commoditised. At the same time, we have reinvested these savings into our content by deepening our commitment to vernacular and regional content, particularly in signature, premium local and Nusantara IPs as they clearly differentiate our product proposition vis a vis global competitors.”

 

To this end, Astro has entered into win-win partnerships with local and regional content powerhouses such as Grup Majalah Karangkraf and Emtek, as well as talents, award-winning directors and producers like Ifa Isfansyah and Salman Aristo from Indonesia, Kiatkamon Iamphungporn from Thailand and Bianca Balbuena from the Philippines. This has resulted in the production of key original content IPs for ASEAN audiences like 3 A.M. Bangkok Ghost Stories, Gantung, Do[s]a and Doors. Astro’s animation kids IP, Cam & Leon co-produced with Giggle Garage, has been licensed to Indonesia’s Global TV and will be available on Amazon Prime Video in the US.

 

This year Astro further strengthens its position as the home of sports with live broadcast of the 2018 FIFA World Cup Russia™, Gold Coast 2018 Commonwealth Games, Jakarta 2018 Asian Games and the 2018/2019 Premier League season in August. To amplify live sports conversation among fans in Malaysia on social media, Astro has partnered with Twitter to provide sports clips and content on Stadium Astro’s twitter account.

 

Talent: Upskilling, reskilling and retooling our talent



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