Kuala lumpur: Astro Malaysia Holdings Bhd (Astro) experienced no change in its share price during early trading, following the release of its financial year 2026 (FY2026) earnings report, which showed a decrease in profitability.

According to BERNAMA News Agency, at 10:08 am, Astro's shares were stable at eight sen, with a trading volume of 15.51 million shares. The company reported a drop in net profit to RM63.13 million for FY2026, compared to RM129.15 million in the previous financial year. Additionally, its revenue saw a decline from RM3.08 billion to RM2.79 billion.

In its filing with Bursa Malaysia, Astro attributed the reduced revenue to decreases in subscription, advertising, rental income, and sales of programming rights. Furthermore, Kenanga Investment Bank Bhd, in a recent note, revealed that it had lowered its FY2027 earnings forecast for Astro by 32 percent, citing increased broadband costs.

Despite these challenges, the investment bank noted early signs of stabilization in subscriber attrition, suggesting that both valuations and earnings might be approaching their lowest point. On the positive side, Astro's strategic focus on expanding its intellectual property (IP) portfolio presents potential for revenue growth across multiple platforms, including linear TV, digital channels, regional syndication, and international streaming partnerships.

Kenanga upgraded Astro from 'underperform' to 'market perform,' citing the emergence of value at current depressed valuations which already factor in earnings risks. The bank also highlighted the possibility of an upswing in the subscriber base, which could further contribute to Astro's recovery.