KUALA LUMPUR, Jan 30 – Astro Malaysia Holdings Bhd is expecting to generate RM500 million in annual revenue by 2019 via its new joint-venture home shopping company, Astro GS Shop Sdn Bhd. Sixty per cent owned by Astro Malaysia and 40 per cent by Korea’s GS Home Shopping Incorporated, the company has a total capitalisation of RM70 million.
Chief Executive Office Datuk Rohana Rozhan said by leveraging on its current 4.3 million customers, the media group was confident in venturing into the business. “Go Shop, our new shopping service has attracted 72,000 customers since its soft launch in November last year.
“And, given Astro’s available infrastructure such as broadcast facilities, call centre, channel platforms and production studios we have the right expertise to make this venture a success,” Rohana told a press conference after launching the Go Shop shopping service here today.
Since its launch in November 2014, Go Shop has enjoyed huge support from the market, with about 118,000 products sold to customers. Go Shop, available on its channel, as well as, online and via mobile platforms, offer customers digital and electronics products, home and kitchen appliances, lifestyle, fashion accessories and cosmetic.
Responding to a question on Astro Malaysia growth for this year, Rohana said the company was in the midst of achieving 80 per cent household penetration. Previously, a research house reduced Astro Malaysia’s financial years 2015 and 2016 earnings estimate by 4.2 per cent and 3.7 per cent, respectively due to the lower net profit reported in the third quarter.
“Currently, the household penetration stood at 60 per cent and we are on track to achieve 80 per cent which is align with our business plan,” she said, adding that NJOI, Malaysia’s first subscription-free satellite television service, was also performing well in supporting the group’s growth.