[%RIkx%]
Research by HLIB
Hold – TP RM0.30

“Continues to slide"

Astro chalked in soft showing with 1QFY25 core earnings of RM23.2m (-17% QoQ; -68% YoY) which came in below our (11%) and consensus (13%) expectations. The negative deviation was due to decline in advertising and subscription revenue. In view of the results shortfall, we cut our FY25/26 forecasts by -25%/-33%. Despite an uptick in ARPU YoY, number of subscribers continue to decline as the structural substitution to other OTTs persist. Additionally, the appreciation in USD continues to put a strain on its cost structure. Maintain HOLD with slightly lower DCF-based TP of RM0.30 (WACC: 6.7%, TG: -1%).

Analyst:
Syifaa’ Mahsuri Ismail
[%UpwH%]

$KLSE-ASTRO
Research by HLIB
Hold – TP RM0.30

“Continues to slide"

Astro chalked in soft showing with 1QFY25 core earnings of RM23.2m (-17% QoQ; -68% YoY) which came in below our (11%) and consensus (13%) expectations. The negative deviation was due to decline in advertising and subscription revenue. In view of the results shortfall, we cut our FY25/26 forecasts by -25%/-33%. Despite an uptick in ARPU YoY, number of subscribers continue to decline as the structural substitution to other OTTs persist. Additionally, the appreciation in USD continues to put a strain on its cost structure. Maintain HOLD with slightly lower DCF-based TP of RM0.30 (WACC: 6.7%, TG: -1%).

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

$ASTRO / 6399 (ASTRO MALAYSIA HOLDINGS BERHAD)