- We re-affirm our HOLD recommendation on Astro Holdings
Malaysia, with an unchanged fair value of RM2.89/share, based on a 10% discount
to our DCF value.
- It has been reported in local dailies that Asian
Broadcasting Network (ABN) Media Group, a new digital cable pay-TV company, is
looking at achieving an 80% penetration of the 6mil households in 5 years’
times and to have 100% coverage in the country as well as offering satellite
services only to the rural areas.
- ABN’s trial offering had begun in June for selected areas.
The basic package is RM29.99 per month for 50 channels. This comprises
information, education, entertainment games and radio channels. Furthermore,
the rollout of video-on-demand and sport packages will be made available soon
and should not exceed RM100 a month. The set-up box and installation charges
will be waived in the initial stage.
- ABN is positioned as a low-cost pay-TV provider – the same
set of customers for Astro’s NJOI. Fortunately for Astro, the NJOI services – a
subscription free DTH TV offering 18 TV channels and 20 radio stations – target
non-subscribers and the low-income segment. A onetime payment of RM388 is borne
by NJOI subscribers for equipment and installation charges. Thereafter,
subscribers may view additional content on a pre-paid basis at RM20 for 15
days.
- Having said, ABN’s rollout of fibre-to-home is time
consuming given that it is physically laying fibre to homes instead of
leveraging on Telekom Malaysia’s HSSB network. As such, ABN is looking at
offering TV services via the internet such as over-the-top services which can
be available as early as next year. Additionally, we understand that ABN’s goal
is to be a triple-play service provider.
- Positively, the introduction of B.yond IPTV (in
partnership with TIME) in FY11 has transformed Astro into a multi-platform
Pay-TV operator and a triple-play service. The collaboration with Maxis for a
triple-play service (voice, video, broadband) is targeted for launch in April
next year. This will be using TM-owned fibre, powered by Maxis. Two months thereafter,
Astro On-the-Go (OTG) bundling, an over-the-top service, with Maxis mobile and broadband
services, are expected to be launched. OTG was introduced this year with a
total of 19 channels and nine radio channels.
Source: AmeSecurities
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