PETALING JAYA: Analysts have mixed views on Astro Malaysia Holdings Bhd’s potential earnings growth in the coming quarters, despite a slew of new business ventures.

       Astro had earlier announced 13 new international content-oriented channels, including Netflix, that will be joining its distribution line-up.

       UOB Kay Hian Research has cut Astro’s earnings forecast for the financial year ending Jan 31, 2022 (FY22) and FY23 by 9% to factor in lower revenue due to the lockdown impact in FY22 and the higher content cost for sporting events in FY23.

       “With the gradual reopening of the economy, management is confident on the recovery in TV revenue with the returning of commercial customers and its focus on ‘turning the tide’ via expanding streaming services and enriching TV content.

       “On the recent partnership with Netflix, to be launched by end-2021, management expects strong interest as the package would be competitively priced and it is available on ‘big screen’ via Ultra and Ulti boxes.

       “Nevertheless, we reckon shrinking customer wallets due to the lockdown could have a longer-term impact in terms of the ability to drive average revenue per user (Arpu) uplifts naturally,” it said in a report yesterday.

       On Astro’s recent financial results for the second quarter ended July 31, 2021 (Q2), RHB Research said its earnings were in line with expectations following higher content cost and the lockdown, which curtailed wallet share and consumers’ discretionary spending.

       “We lower the forecast FY22-FY24 core earnings by 3% to 5% to bake in lower Arpu and margins,” it said in a note to clients.

       Astro’s net profit for the quarter declined 34.8% to RM87.13mil from RM133.65mil a year ago due to subdued commercial subscription and merchandise sales.

       Meanwhile, AmInvestment Bank Research said in Q2, Astro’s television revenue was relatively flat due to lower subscription fees led by the Covid-19 pandemic.