5 interesting takeaways from Astro’s Q1 2016 results: Page 3 of 4
By Goh Thean Eu June 15, 2016
Malaysians love shopping, even on TV!
Saying Malaysians love to shop may be an understatement. The company’s AstroGoShop shopping platform grew substantially in Q1.
During the quarter, it served 216,000 customers, sold 350,000 products, and registered revenue of RM63.9 million. A year ago, it had served 160,000 customers, sold 175,000 products, and recorded revenue of RM37 million.
With this strong traction in its home shopping segment, “We expect the home shopping segment to break even at a pretax level this year, driven by stronger sales,” CIMB Investment Bank analyst Mohd Shanaz Noor Azam said in a report.
Astro did not say what proportion of its shoppers are purchasing online (via its e-commerce portal) and how many through the phone (via its TV shopping channels).
Upselling a success
Don’t be overwhelmed by the charts above. They essentially tell one story: That Astro has been successful in upselling its value-added products and services.
On a year-on-year basis, the company managed to grow most of its value-added services and products.
This growth is essential because it helps to increase the stickiness of its customers.
What is also interesting is that Astro-on-the-Go (AOTG) downloads have increased significantly to more than 2.3 million users. AOTG allows customers to watch Astro’s content via their mobile devices.
With the upcoming Olympics and current Euro 2016 football tournament, it would not be surprising to see the number of Superpack and Superpack Plus customers growing in the coming quarters.
Next Page: Our number-crunching comes down to the crunch
