Maybank Investment Bank Research bought calls on Astro Malaysia based on discounted cash flow (DCP) on Astro shares by two per cent to RM1.36.
In a statement issued, Astro's revenue continued to decline by 26% to RM3.2 billion from the RM4.4 billion level recorded five years ago.
The decline was driven by the aspect where many Malaysians of this compilation started buying TV boxes with pirated content and then later terminated their ASTRO channels.
Examining the decision of the Kuala Lumpur Intellectual Property High Court on May 24 showed that the sale of TV boxes containing pirated content was against the law.
Following that, it continues to draw attention to Maybank that that could potentially be a positive starting point for Astro.
Astro also continues to take steps to approach e-commerce and social media platforms to end the sale of TV boxes with pirated content in the hope that Malaysians will re-subscribe to Astro channels.
In addition, Astro also estimates that for every RM100 million of TV subscription revenue earned, it will provide a net benefit to Astro of around RM51 million and 10 sen to DCF -based TP.
Through that aspect, Astro has upgraded its service standards over the last three months by announcing collaborations with international subscription video (SVOD) operators, Disney + Hotstar and Netflix.
Astro has also launched its own SVOD products used as Sooka and will aim to Malay millennium.
