Astro Malaysia Holdings Bhd reported a net loss of RM25.8 million for the second quarter ended July 31, 2026, marking a significant reversal from the RM16.39 million net profit posted in the same period a year earlier. The company attributed the weaker performance primarily to a 4.2% year-on-year decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA), influenced by increased costs related to set-top boxes and broadband services, despite reductions in staff and content expenses as a proportion of revenue.

Revenue for the quarter fell 7% year-on-year to RM633.75 million, largely due to lower subscription income. Astro’s television segment experienced a 7.5% drop in revenue, driven by decreases in both subscription and advertising revenue. Meanwhile, revenue from the radio segment declined by 1.4%, following stronger festive season spending in the first quarter of 2026.

For the first half of the financial year ending January 31, 2027, Astro posted a net loss of RM24.24 million compared to a net profit of RM29.87 million in the same period of the previous year. The loss per share stood at 0.46 sen. The half-year results reflected higher net financing costs, affected by unrealised foreign exchange losses related to unhedged lease liabilities, tax expenses, and depreciation of property, plant, and equipment, along with lower EBITDA. Revenue for the six months declined by 7% year-on-year to RM1.29 billion, attributed to decreased subscription and advertising revenue.

In response to the challenges, Astro emphasized its ongoing transformation towards a more digital-focused and scalable content business. The company is investing in local content, including high-quality productions and original storytelling under platforms such as Astro Originals and the Astro Shaw Cinematic Universe, which aims to build a stronger intellectual property portfolio for long-term growth.

Astro is also expanding its customer offerings by increasing content volume and diversity, particularly at lower subscription tiers, while reducing entry-level pricing on its Astro and Sooka platforms. Its new streaming-first service, Astro X3, launched during the quarter, requires no set-top box or installation and will soon dispense with contract requirements, catering to a previously underserved market segment.

Additionally, the company is accelerating growth in adjacent areas including Sooka, enterprise services, digital and social advertising, and studios. These efforts are complemented by initiatives to transform legacy cost structures to support expansion. A strategic review of Astro Fibre is underway, with expected clarity by the second half of 2027.

Astro also continues to develop its advertising ecosystem, aiming to capture audience attention across multiple channels, including digital, broadcast, and live events. Its digital marketing platform, leveraging branded content, social media influencers, and shoppable formats, is reportedly gaining traction in helping brands improve reach and engagement.