Astro Malaysia posts quarterly loss as forex losses and lower subscription revenue weigh on performance

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Astro posts quarterly loss

Highlights

Astro Malaysia posted a net loss of RM25.80 million for the second quarter ended 31 July 2026, with revenue falling 7.24% to RM633.75 million.
The main loss drivers were set-top box costs, staff costs, higher financing costs, and unrealised forex losses of RM58.4 million due to the ringgit's weakness against the U.S. dollar.
No dividend was announced, while Astro shares fell 8.3% to 5.5 sen, giving it a market value of RM288.3 million, after declining 45% since the start of the year.

This article was translated from the original. Read the original version by our correspondent here.

Second-quarter performance and causes of the loss

As reported by The Edge Malaysia, Astro posted a net loss of RM25.80 million for the second quarter ended 31 July 2026, compared with a net profit of RM16.39 million a year earlier, while revenue fell 7.24% to RM633.75 million from RM683.21 million, according to a filing with Bursa Malaysia on Wednesday.

The group said the quarterly loss was due to higher set-top box and staff-related costs, alongside increased net financing costs. Performance was also affected by unrealised foreign exchange losses amounting to RM58.4 million on unhedged lease liabilities, following the ringgit's weakness against the U.S. dollar.

Astro said its foreign currency exposure mainly involves sales, purchases and borrowings in U.S. dollars. The company uses FX contracts, FX options and cross-currency interest rate swaps to hedge other liabilities.

For the six months ended 31 July 2026, Astro recorded a net loss of RM24.24 million compared with a net profit of RM29.87 million in the same period a year earlier, as revenue declined 6.7% to RM1.29 billion from RM1.39 billion. No dividend was declared alongside the latest results announcement.

In a statement, the group said that while it continues to reduce its cost base, softer market conditions are still weighing on profitability, with LATAMI of RM26 million mainly due to unrealised forex losses on unhedged transponder lease liabilities. Astro added that the company remains cash-generative, with free cash flow of RM113 million.

Market pressures and business implications

Interim group chief executive officer Henry Tan said Astro is moving decisively to shape its next phase by growing viewership, deepening engagement and unlocking new revenue opportunities across streaming, advertising and adjacent businesses.

As at 31 July, Astro's total assets stood at RM4.78 billion, down 3.9% from RM4.97 billion at the end of January, while total liabilities fell 5.5% to RM3.45 billion due to lower borrowings, payables and derivative financial instruments.

The group also described content piracy as among the biggest threats to its business, noting that efforts are being intensified through court rulings and penalties against illegal streaming. In the market, Astro shares fell half a sen, or 8.3%, to close at 5.5 sen ahead of the results announcement, giving the company a market value of RM288.3 million, after the counter had declined 45% since the start of the year.

In our earlier coverage of corporate updates on Bursa Malaysia, we compiled several key announcements, including listed companies' financial results as well as new contracts and corporate actions. Among them was UMS Integration's proposal to raise up to RM450 million through a share placement to fund automation and capacity expansion in Penang, as well as the expansion of operations in Vietnam and Singapore.

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