StarHub’s 3Q09 profit up 7% on higher sales

10 Nov 2009

Singaporean fixed line and mobile operator StarHub has reported a 7.1% increase in net profit for the three months ended 30 September 2009 on the back of higher sales across three out of its four business areas. The group posted net profit of SGD85.2 million (USD61.4 million), compared with SGD79.5 million a year ago, while quarterly operating revenues increased by 2.4% to SGD537.1 million; EBITDA for the quarter rose 5% to SGD172 million, it added. Meanwhile capital expenditure for the three-month period was SGD6 million lower year-on-year at SGD54 million compared to SGD60 million a year ago; year-to-date, however, it was 6% higher at SGD175 million. Based on the current outlook, the company expects its 2009 service revenues to be maintained at around the 2008 level and its 2009 blended EBITDA margin on service revenue to be around 32%. In addition, StarHub said its 2009 cash capital expenditure target is not expected to exceed 11% of operating revenue.

In terms of operations, StarHub said mobile revenues increased 5% for the quarter, while YTD turnover rose 1% to SGD813 million from SGD807 million in 2008. Post-paid monthly blended ARPU decreased SGD5 to SGD69, while pre-paid ARPU increased SGD1 to SGD23. The lower post-paid ARPU was mainly due to lower usage of voice, IDD and roaming, it said. The group closed September with 1.884 million mobile subscribers, compared with 1.742 million a year earlier. In the broadband segment, StarHub said quarterly revenue decreased 6% year-on-year, while year-to-date revenue slipped 4% to SGD181 million. The operator’s MaxOnline customer base grew by 7% though, ending the quarter at 392,000. Broadband ARPU decreased SGD7 to SGD50 as customers continued to seek out lower price plan offers and attractive marketing premium bundles. Meanwhile, Fixed Network quarterly revenue increased 6% to SGD80 million, and year-to-date revenue rose 7% to SGD239 million. Data & Internet services revenue, which makes up 85% of the Fixed Network revenue, grew 9% to SGD67 million from SGD62 million a year ago; YTD, revenue recorded 12% growth to SGD203 million.

Singapore, StarHub