KUALA LUMPUR: Astro Malaysia Holdings Bhd posted a net loss of RM47.05 million in the third quarter (Q3) ended Oct 31, 2024 from a net net profit of RM5.8 million in the same quarter in 2022.
The company's revenue fell to RM828.55 million from RM885.39 million last year.
Astro said the decline was owing to lower earnings before interest, tax, depreciation and amortisation (Ebitda) margin due to higher staff-related costs following from a voluntary separation scheme (VSS), content costs, impairment of receivables and other costs and fees.
For the nine-month period, Astro posted a net loss of RM7.51 million compared to a net profit of RM204.29 million in the previous corresponding period.
Revenue was RM2.52 billion against RM2.67 billion in the nine months of last year.
Astro group cheif executive officer Euan Smith said the company completed its VSS in 3QFY24, which reduced headcount by 20 per cent.
Euan said the VSS cost the company RM52 million, booked in the current quarter, while estimated payback would be under a year.
"The group also exited the home shopping business so that its resources can be invested into the business lines that are delivering growth," he said.
Moving forward, Euan said ongoing strength of the US dollar continues to affect cost lines in its business, while local economic conditions (exacerbated by geopolitical factors) and softening customer sentiments also present challenges with regard to revenue growth.
"In response, we are introducing more affordable product entry points to drive product signups and support customers," he added.