Astro's Q1 profit falls 21% on lower adex revenue

Astro Malaysia Holdings (Astro) has reported a 21% drop in its net profit for its first quarter which ended on 31 April 2025 (1QFY2026), due to weaker television subscription and advertising revenue. 

Its first quarter profit came in at RM13.5 million, compared to RM17 million the same period a year ago. Its revenue also slipped to RM703 million, which is a 9% drop from RM773 million the year before.

For its the holding company's television segment, subscription revenue dropped 6% to RM584 million for the quarter, while advertising expenditure (ADEX) revenue fell 13% to RM36 million. It attributed these results to a decrease in subscription revenue and advertising revenue as well. 

Don't miss: Astro breaks family traditions in comedic Raya ad

Meanwhile, its radio segment recorded a 27% drop in revenue to RM33 million, compared to RM45 million previously due to soft consumer sentiments leading to lower advertising spend.

Astro also reported a 21% drop in its overall advertising expenditure (ADEX) revenue to RM69 million, compared to RM87 million the same period a year ago. Astro shared that the overall ADEX industry has been impacted, as brands cut spends. 

Its digital and addressable segment came in with RM14 million in advertising revenue compared to RM15 million the year before, its radio segment at RM30 million compared to RM41 million previously, while its TV segment brought in RM25 million compared to RM30 million.

According to Astro, its first quarter ADEX revenue reflected the caution seen in the broader market as tariff wars joined geopolitical and consumer spending issues on the list of concerns, primarily due to multi-nationals scaling back spending, or moving it out of Malaysia all together, in light of economic uncertainty.

Astro Malaysia Holdings' group chief executive officer Euan Daryl Smith said in a statement, that this quarter was a challenging one for ADEX in particular. "It was shaped by economic headwinds such as rising input costs, cautious consumer spending, and uncertainty in global trade and tariffs. Yet, within that context, we’re encouraged by the signs of growth as we move further into the year," he added. 

"Tough quarters test resilience, and ours lies in content. Content is at the heart of everything we do. It fuels our revenue streams and it’s what keeps Malaysians coming back for," said Smith. 

Astro said in a statement that despite the challenging environment, fresh opportunities have presented itself as the company is actively pivoting toward more resilient advertiser segments, including MSMEs, local brands and government support, while enhancing the cross-platform capabilities and reach that brings brands to the ecosystems.

It is also positioning itself as an "attention company", to be well poised as the preferred advertising ecosystem. This also includes stronger use of proprietary content IPs, smarter campaign targeting through unified audience measurement (UAM), and new out-of-home (OOH) solutions in F&B hotspots.

The media company is also looking to prioritise local content moving forward. "Our edge is local. Now, 82% of viewing time on Astro is spent on local and vernacular programming, up three percentage points from the last quarter," said Smith. "To meet this demand, we are continuing to produce over 10,000 hours of fresh content annually. From Astro Originals to signature dramas and beloved variety shows," the group CEO added.

He also noted its local series "Dia imamku" ('He is my leader'), "Seribu tahun" ('A thousand years'), and "Dendam seorang madu" ('Revenge of a sweet person') have topped charts in the recent quarter. "When we get local content right, we capture hearts and create leverage. It gives us negotiating power with content partners and enables us to stretch every ringgit that we spend on content further," said Smith. 

"Even in a softer quarter, we’re laying the groundwork for stronger performance ahead. We remain committed to growing new customers, strengthening the adjacent businesses, and reducing legacy costs as fast as we can," he added. 

Related articles: 
Will the Era FM incident affect Astro’s ad revenues?
Astro promises to strengthen content review as Era FM hosts receive major backlash
Astro Malaysia ceases operations of Go Shop amidst changes in consumer behavior