Rising costs impact StarHub’s Q3 results

Singapore’s second largest telecoms group by revenues, StarHub, has reported a 7.6% fall in net profits for the three months ended 30 September 2011, as rising operating costs outpaced revenue growth. The telco booked net income of SGD75.8 million (USD59.7 million) for the period, compared with SGD82.0 million in the third quarter of 2010. Operating expenses in 3Q11 climbed 7.1% year-on-year to SGD479.4 million due to higher subsidies for smartphones it said, and eclipsed revenue growth which only increased by 3.6% to SGD572.2 million in the same period. Turnover from the group’s mobile arm – its primary ‘cash cow’ – stood at SGD307.4 million in the third quarter, up 3% year-on-year, thanks to strong take-up of data subscription plans. Its total mobile subscriber base stood at 2.17 million as at 30 September, although StarHub also noted a decline in mobile market share, which slipped to 28.4% at that date, compared to 28.6% at 30 June. Elsewhere, StarHub said revenue from pay-TV, the firm’s second largest business segment after mobile, rose 1% from a year ago.