Astro Malaysia Holdings 6399
KUALA LUMPUR (June 7): Astro Radio, a segment of media group Astro Malaysia Holdings Bhd, remains the most popular radio network in the country, with 15.6 million listeners every week across its nine radio stations. “This makes up 77.8% of Malaysia’s radio-listening audience,” Astro said, citing the latest GfK Radio Audience Measurement survey. “Our nine radio station websites are visited by 7.6 million Malaysians on a monthly basis, while our digital listenership recorded over 17 million streaming sessions,” Astro added in a statement. Astro Radio CEO Datuk Jake Abdullah said ERA fm, hitz fm, MY FM and THR Raaga remain the country’s top Malay, English, Chinese and Tamil stations, respectively. THR Gegar, meanwhile, retained its leading position in the east coast of peninsular Malaysia, Abdullah added. He said Astro Radio’s digital fan base has also grown, as social media has proven to be a great platform to engage with fans. “Platforms like these enable us to build a community of fans centred on tastemakers. As a result, we gained over 13.4 million social media fans, and our posts reach over 6.7 million people daily,” Abdullah added. Shares in Astro were up three sen or 1.17% at RM2.60 at 3pm today, giving the company a market value of RM13.54 billion.
(Source: http://www.theedgemarkets.com/article/astro-radio-remains-top-radio-network-malaysia-1)
The price of Astro Malaysia Holdings bearish since just before the announcement of 4th quarter report. Although the profit after tax is declined from RM608 million (FY16) to RM592 million (FY2017). To see what was going on, let's see one by one below.
2017 Annual Report Quickfacts
| Astro Malaysia Holdings Berhad Corporate Structure | |||
| TV and Radio | % | Media Sales and Content | % |
| Measat Broadcast Network Systems SDN BHD | 100 | Astro Entertainment Sdn Bhd | 100 |
| Astro Radio Sdn Bhd | 100 | Astro Sports Marketing Sdn Bhd | 100 |
| Capital FM Sdn Bhd | 100 | Asia Sports Ventures Pte Ltd | 100 |
| DVR Player.Com Sdn Bhd | 100 | Astro Awani Network Sdn Bhd | 80 |
| Maestra Broadcast Sdn Bhd | 100 | Maestro Talent and Management Sdn Bhd | 100 |
| Measat Digicast Sdn Bhd | 100 | Red Communications Sdn Bhd | 29 |
| Measat Radio Communications Sdn Bhd | 100 | Spark Asia TV Pte Ltd | 30 |
| Perfect Excellence Waves Sdn Bhd | 100 | Turner Astro Limited | 20 |
| Radio Lebuhraya Sdn Bhd | 100 | Astro Shaw Sdn Bhd | 100 |
| Yayasan Astro Kasih | 100 | Karya Anggun Sdn Bhd | 100 |
| Astro Productions Sdn Bhd | 100 | Nusantara Films Sdn Bhd | 100 |
| Astro Productions Services Sdn Bhd | 100 | Tayangan Unggul Sdn Bhd | 100 |
| Digital Media and Publications | Retail | ||
| Astro Digital Sdn Bhd | 100 | Astro Retail Ventures Sdn Bhd | 100 |
| Astro Digital 5 Sdn Bhd | 100 | Astro GS shop Sdn Bhd | 100 |
| Astro Digial Publications Sdn Bhd | 100 | Astro GS shop Singapore Ptd Lte | 100 |
| Tribe Limited | 100 | ||
| Management Shared Services | Others | ||
| Astro Group Services Sdn Bhd | 100 | Astro Brunei Sdn Bhd | 100 |
| Kristal-Astro Sdn Bhd | 49 | ||
| MBNS multimedia technologies Sdn Bhd | 100 |
Main points of GCEO Statement in FY2017
Expanding Tribe with mobile first regional Over-the-Top OTT streaming app in Indonesia and Philiphines. Go Shop Goes Regional with home shopping business in Malay and Mandarin. Creating Content for a Digital World like Astro Gempak the first Malay-Based Youtube Channel to attain 1 million subscribers. Regional Content Creation and Collaborations by partnerships with Indonesia for the creation of Nusantara content, Thailand by securing the production of the original series 3 A.M., and China and India by concluding the licensing deal to remake The Journey.
Now look at the revenue by Astro Malaysia Holdings last one year, from FY2017 we can see that revenue from television is about 89% of total revenue, revenue of radio division is 6% while Go Shop only 5 % of total revenue. At FY2016, 91% of total revenue is television, 5% is radio and 3% is Go Shop. Comparison between these two financial year revenue, assuming the total revenue for FY16 and FY17 are the same, we can found that a decrease in revenue made by television from 91% to 89%. This may be caused by the Go Shop is emphasized recent years. The revenue made by Go Shop is from 3% at 2016 to 5% in 2017, is increasing 35% from FY2016. It means Go Shop is playing more important role in revenue and growing faster than Radio which is a 8% increase. Although the revenue from Go Shop is not profitable.
By the way, what is Go Shop?
Go Shop is a shopping platform created by Astro Malaysia Holdings.
Now we look at the rank of this website.
From the trends by google, obviously Go Shop Malaysia is established in 2015. After a sharp increase of market interest, it goes average, at least to break even.
Let's see the profit before tax, almost 83% of total profit is generated by television part. Next is radio which brings 23% of total profits. Sadly Go Shop Malaysia consumes money more than earning money. But the loss is decreasing from RM 21 million to RM 20 million. NOT MUCH DIFFERENCE. Assuming we make constant of profit before tax made by both years, Radio brings more 13% of profit if compare to FY2016. A good sign while radio is more competitive these few years.
Assuming we treat PAT as constant for both FY17 and FY16, we can see EBITDA, EBIT, Profit before Tax is decreasing. A bad sign isn't it? The profit decreases!
Now we look at five years financial result, for EBITDA, a nice increasing from FY13 to FY16. Then it came with a big drop in FY17. Why? Definitely more cost in revenue, low efficiency in generating money. EBIT, PBT, PAT, PATAMI almost the same pattern and cannot find a big drop like EBITDA did in FY17. This only can be explained by lower depreciation and amortization, taxes if compare with previous years. Only a drop in 2014 which was caused by GST implementation.
Now look at the revenue by Astro Malaysia Holdings last one year, from FY2017 we can see that revenue from television is about 89% of total revenue, revenue of radio division is 6% while Go Shop only 5 % of total revenue. At FY2016, 91% of total revenue is television, 5% is radio and 3% is Go Shop. Comparison between these two financial year revenue, assuming the total revenue for FY16 and FY17 are the same, we can found that a decrease in revenue made by television from 91% to 89%. This may be caused by the Go Shop is emphasized recent years. The revenue made by Go Shop is from 3% at 2016 to 5% in 2017, is increasing 35% from FY2016. It means Go Shop is playing more important role in revenue and growing faster than Radio which is a 8% increase. Although the revenue from Go Shop is not profitable.
By the way, what is Go Shop?
Go Shop is a shopping platform created by Astro Malaysia Holdings.
Now we look at the rank of this website.
The interest of Go Shop is dropping from July 2016 to November 2016. Average look good after January 2017. Hope this improvement will change the unprofitable Go Shop Malaysia to profitable.
From the trends by google, obviously Go Shop Malaysia is established in 2015. After a sharp increase of market interest, it goes average, at least to break even.
Let's see the profit before tax, almost 83% of total profit is generated by television part. Next is radio which brings 23% of total profits. Sadly Go Shop Malaysia consumes money more than earning money. But the loss is decreasing from RM 21 million to RM 20 million. NOT MUCH DIFFERENCE. Assuming we make constant of profit before tax made by both years, Radio brings more 13% of profit if compare to FY2016. A good sign while radio is more competitive these few years.
Assuming we treat PAT as constant for both FY17 and FY16, we can see EBITDA, EBIT, Profit before Tax is decreasing. A bad sign isn't it? The profit decreases!
Now we look at five years financial result, for EBITDA, a nice increasing from FY13 to FY16. Then it came with a big drop in FY17. Why? Definitely more cost in revenue, low efficiency in generating money. EBIT, PBT, PAT, PATAMI almost the same pattern and cannot find a big drop like EBITDA did in FY17. This only can be explained by lower depreciation and amortization, taxes if compare with previous years. Only a drop in 2014 which was caused by GST implementation.
Current Ratio measures the company's short-term liquidity, that is, its ability to meet its short-term financial obligations as and when they fall due within the year with assets which are readily convertible into cash.
Too low a Current Ratio relative to the industry average may indicate critical liquidity issues while too large a ratio may imply the existence of idle or underutilised resources.
Malaysia begins switch to digital TV
KUALA LUMPUR -- Malaysia has launched digital terrestrial television, or DTT, moving away from analog and radio wave technology in line with the global digitization trend that began in developed economies.
To start, 4.2 million low-income households or about two-thirds of all families will be given free decoders to receive DTT broadcast named myFreeview. The service is operated by state-appointed company MYTV Broadcasting, which has been tasked to build the infrastructure for the migration from analog to digital under a 30-year concession.
The broadcast currently carries nine free-to-view local TV channels and four radio programs through 24 transmission towers, covering about 87% of the country's population. The coverage will be extended to 98% by the end of the year before terminating analog services by June next year.
"That is the manifestation of the government's efforts to improve the quality of life, on par with other developed countries," Prime Minister Najib Razak said during the launch of the service on Tuesday.
The 10 members of the Association of Southeast Asian Nations aim to switch off analog broadcasting by 2020, starting with Singapore by the end of the year after successfully rolling out DTT services since December 2013.
Thailand has started digital broadcasting in 2014, while other countries including Indonesia, the Philippines and Vietnam also began the service in selected cities within their markets.
Digitizing TV transmission frees up broadcasting frequency spectrum that governments could let to other industries, including telecommunications. It could also generate revenue through advertisements and creative content, enhancing business opportunities for the creative industry.
MYTV, which has the capacity to air 30 standard and high-definition channels, said it would introduce online shopping and video-on-demand services in the future, competing against paid-TV operator Astro Malaysia Holdings.
Source:http://asia.nikkei.com/Politics-Economy/Policy-Politics/Malaysia-begins-switch-to-digital-TV
The outlook of Astro is still negative so far, but you can try your luck at lower price later around RM2.48. The risk is on yours. That's all.
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