Astro’s Earnings Decline in 2025 Amid Market Pressures: What’s Next?

Astro Malaysia Holdings Berhad faced a difficult 2025 with significant declines in revenue and profitability, underscoring challenges in Malaysia's media sector and evolving consumer demands. For the second quarter ended July 31, 2025, Astro recorded a net profit of RM16.39 million, marking a steep 70% drop from RM54.71 million in the comparable period of the previous year. Revenue for the quarter also declined by 13.2%, falling from RM787.30 million to RM683.21 million, influenced predominantly by lower subscription revenue, reduced sales of programming rights, and diminished advertising income.

Over the first half of the financial year, Astro posted revenue of RM1.39 billion, down 11.1% from RM1.56 billion in the year-ago period, with net profit decreasing to RM29.87 million from RM71.72 million previously. Despite these downward trends, the company remained cash-generative, delivering free cash flow of RM138 million for the quarter.

Astro’s management acknowledges the challenging economic backdrop characterized by cautious consumer spending and headwinds from a competitive media landscape. The group's CEO, Euan Smith, expressed cautious optimism, emphasizing ongoing efforts to grow the customer base, strengthen adjacent business segments such as Astro Fibre and sooka sports streaming, and reduce legacy costs. In August 2025, Astro achieved its first positive net additions in Pay-TV subscribers since 2018, suggesting initial signs of success from product and pricing revisions.

Strategically, Astro is focusing on long-term sustainable growth by investing in local content production, which accounts for 82% of viewer consumption on its platform. The company produces over 10,000 hours of new content annually, including Astro Originals, dramas, animations, and movies. Additionally, Astro aims to expand content volume and diversity at lower subscription tiers and make its offerings more affordable.

The company also highlighted content piracy as a significant threat to revenue and industry stability. It is actively lobbying for enhanced regulatory reforms and enforcement to protect its intellectual property and secure the future of Malaysia’s creative sector.

Looking ahead, Astro anticipates growth opportunities driven by upcoming high-demand sporting events like the Premier League, Malaysian Football League, and the 2025 Badminton World Federation Championship that could bolster advertising and subscription revenues in its enterprise segment.

In conclusion, although Astro Malaysia Holdings faced a challenging 2025 with decreased earnings and revenue, management remains committed to strategic transformation aimed at stabilizing its financial performance and sustaining its position as Malaysia's top entertainment and streaming destination. Investors and stakeholders should watch closely how these initiatives unfold amid ongoing economic and technological shifts in the media industry.