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StarHub reports 3.7% fall in third-quarter profit

9 Nov 2010

Singapore telecoms group StarHub has reported third-quarter net profits of SGD82 million (USD63.7 million), down 3.7% when compared to the same period of 2009. Operating revenue for the three-month period ended September 2010 rose 2.8% year-on-year to SGD552 million, from SGD537 million previously. Total service revenue for the quarter amounted to SGD534.1 million, up 4% or SGD18.4 million on Q3 2009. The group’s Mobile division registered a 8% year-on-year increase in service revenue, driven by higher subscription revenue from post-paid users; Fixed network services registered a 7% year-on-year increase in revenue due to growth in both its data and voice services; Pay-TV revenues dipped 8% year-on-year due mainly to a reduction in Sports package subscription price from SGD25 per month to SGD12 per month, effective June 2010; and Broadband services revenue was 1% down due to increased competitive pressure. For the nine-month period ending September, total service revenue was 4.9% higher year-on-year at SGD1.61 billion with all services, other than Broadband, contributing higher revenue year-on-year. Broadband services revenue for the nine months was 2% lower year-on-year. StarHub said that its decision to offer high subsidies for smartphones and its investments into the World Cup helped to drive down nine-month net profit by 25.5% to SGD182.7 million.

As at 30 September 2010 the operator’s post-paid mobile customer base stood at 1.024 million, thanks to net additions of 30,000 customers for the quarter and 85,000 for the nine-month period. At the same date the pre-paid mobile base was 1.097 million thanks to 35,000 net adds in the quarter and 117,000 for the year. For the quarter, StarHub added a net 4,000 customers to its broadband customer base which stood at 412,000 as at 30 September 2010, an increase of 20,000 from a year ago.

Singapore, StarHub

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