StarHub Q2 profit drops on higher marketing costs

7 Aug 2008

Singapore’s second largest telecom operator StarHub said its second-quarter net profit fell 21% year-on-year as a result of increased marketing costs designed to retain mobile users and attract broadband internet customers. The group’s net income was SGD64.2 million (USD46.5 million) for the three months ended 30 June 2008, down from SGD80.8 million a year ago and short of the median estimate of SGD82.5 million in a Bloomberg poll of analysts. StarHub said quarterly revenue rose 8.6% year-on-year from SGD489.1 million to SGD531.4 million. Commenting on the results, chief executive officer Terry Clontz said: ‘The slow-growing pay-TV segment is seeing competition from SingTel’s recent [IPTV] offer.’

Sales from cable TV services rose 25% to SGD102.1 million, while high speed internet revenue increased by point four of one percent to SGD62.3 million in the second quarter. StarHub reported mobile phone services revenue climbed 6.5% year-on-year to SGD269.3 million. It ended June with 1.8 million mobile users, up 10% on the previous quarter.

Singapore, StarHub