Astro records stronger ad growth, but FY2026 dips

Astro Malaysia Holdings has reported two consecutive quarters of revenue growth to close FY2026, signalling momentum in its ongoing transformation strategy, even as its full-year performance came in weaker compared to the previous year.

The media and entertainment group's advertising business showed signs of recovery, with advertising expenditure (adex) rising 18% quarter-on-quarter in Q4FY2026. The growth was driven by stronger demand across television, radio and digital platforms.

At the same time, Astro shared that it continues to evolve its advertising capabilities through digital and content-led solutions. Its investment in KULT has helped reactivate digital-only and lapsed clients, while the integration of AI into creative delivery is enabling more agile and targeted campaigns. New formats, including micro-drama collaborations and social-led content, are also gaining traction, signalling a shift towards more immersive and platform-native advertising experiences.

Don't miss: How KULT's AI Raya film shows a father's love can transcend time

For the fourth quarter ended 31 January 2026, the group posted revenue of RM713 million, up 2% quarter-on-quarter (QoQ), following a similar 2% QoQ increase in the previous quarter. The uplift was driven by stronger advertising performance, continued broadband growth and contributions from its film business.

Net profit for the quarter stood at RM24 million, more than double year-on-year, supported by lower financing costs, although this was partially offset by higher staff-related and broadband costs.

Despite the quarterly gains, Astro’s full-year results reflected a softer performance. Revenue for FY2026 came in at RM2.8 billion, down from RM3.08 billion the year before, while net profit fell to RM63 million, roughly half of the previous year’s RM129 million. The decline was attributed to lower subscription and advertising revenue, alongside higher operating costs.

Still, the group pointed to strong audience engagement as a key highlight. Astro recorded nearly 20 billion views across television, radio, streaming and digital platforms in 2025, with local and vernacular content accounting for 81% of total viewing, a 2% year-on-year increase.

Content remained central to Astro’s strategy, with the company contributing to six of the top 10 Malaysian films in 2025, generating RM110 million in box office collections and capturing 39% of the local film market. Leading the slate was “Papa Zola The Movie: Game On”, which grossed over RM69 million and reached 4.5 million viewers across Southeast Asia.

On the small screen, reality series “Gegar Vaganza” retained its position as Malaysia’s top TV show, while “Dia Imamku” ('He's my Islamic leader") emerged as the number one drama. Sports content also continued to drive engagement, with events such as the PETRONAS Malaysia Open 2026 and the Piala FA Final drawing millions of views across Astro’s platforms.

At the same time, Astro has maintained cost discipline, with operating expenses declining 6% year-on-year, even as it continues to manage a dual cost structure spanning legacy pay-TV operations and newer digital investments.

Looking ahead, group CEO Euan Smith said the company will continue to focus on evolving alongside its audiences. “As Astro marks its 30th anniversary, it is a timely moment to reflect on how far we have come and how we continue to evolve alongside the audiences and communities we serve,” he said.

“We are also seeing some positive signs in advertising across television, radio and digital, whilst growing our digital footprint. Our streaming platform, Sooka, continues to gain traction supported by compelling sports, strong local content, and strategic partnerships.” He added that Astro will continue to reprioritise resources, enhance cost discipline, and invest selectively in content, digital capabilities and adjacent businesses to drive long-term growth.

Earlier this month, Astro launched its Raya campaign, with a 15-minute festive film titled "Bila bersama, lagi jadi" ('Better together') as the emotional centrepiece of its RaRa 2026 platform. Beyond the hero film and a large-scale batik installation, the campaign spans retail activations and Astro’s festive programming lineup. The campaign also ties into Astro’s broader content ecosystem, where viewers can experience Raya programming across its services including Astro One for multi-device viewing and Sooka for mobile audiences.

Related articles: 
Can a kampung rivalry ruin Raya? Astro’s film puts it to the test
UNCANNY enters Malaysia with Astro Media Solutions creative appointment 
Astro names creative and media AORs after competitive review