Satellite broadcast provider Astro, saw its profit dip by 58% during the first quarter this year from 1 Feb 2020 to 30 April 2020.

The drop was basically contributed by lower ADEX and subscription revenue, the broadcaster makes much of its revenue from these 2 sources. Despite the MCO and restrictive movement, Astro was classified as essential service and continued to operate its stations without disruption, Henry Tan, Group Chief Executive Officer said: “Astro was quick to take a series of actions to support the nation, customers and communities. We kept Malaysians informed and entertained”.

Compared to the same quarter in 2019, Astro generated RM169 million in profit. It’s first quarter PATAMI (Profit After Tax And Minority Interest) fell by 58% y-o-y to RM72.9 million.

Its revenue was lower by RM182 million, impacted by a decline in advertising and subscription. Astro is facing tough competition from streaming services like Netflix, Amazon and smaller operators like Viu, HypeTV, DimSum and TonTon who are all looking to get a piece of the lucrative subscription model services. These company’s offer monthly unlimited pay-and-watch for below RM50 while Astro continue to charge RM150 and above.

It’s been losing customers ever since streaming services came available and has hard time convincing the younger generation to subscribe to its services. On the outlook for the industry, Astro views the pandemic as a major concern for its recovery plan. In fact the company is less optimistic and expects headwinds in advertising and commercial revenue.