StarHub’s 3Q net income up 27% on higher pay-TV, fixed and broadband revenues

5 Nov 2012

Singapore’s second largest telecoms operator by subscribers and revenue, StarHub, reported net profit of SGD96.2 million (USD78.6 million) for the three months ended 30 September 2012, up 27% year-on-year, driven by higher revenue from its pay-TV, broadband and fixed network services. For the quarter, operating revenue rose 2% year-on-year to SGD585.9 million compared to SGD572.2 million in the same period last year. Contributions from the carrier’s pay-TV services climbed 6% on an annualised basis to SGD99.2 million, fuelled by a SGD2 increase in monthly subscription prices, higher advertising revenue and increased returns from the rental of high definition (HD) set-top boxes. Meanwhile, the group’s broadband unit added a net 5,000 new users in the three-month period to close out September with 443,000 connections, in turn boosting revenue from the segment, and turnover from fixed services rose by 10% y-o-y to SGD89.9 million, aided by the rising popularity of data and internet services.

By contrast, StarHub said that revenue from its mobile operations dipped by 1% y-o-y to SGD303.3 million, even though its customer base increased by 10,000 net users to 2.18 million. The fall in sales was attributed to declining usage of voice calls and SMS, it said.

For the full year, StarHub is maintaining its guidance for operating revenue growth in the ‘low-single digit range’ and says it expects to maintain its annual cash dividend of SGD0.20 per share. The group added that CAPEX in the July-September period reached SGD59.6 million, up 29% on an annualised basis; for the full year it estimates capital expenditure of around 11% of operating revenue as it continues its Long Term Evolution (LTE) deployment. The service provider’s 4G network currently covers key locations in the city-state including the Central Business District, Changi Airport and Singapore Expo, but by the end of this year will serve over 50% of the island, rising to full nationwide coverage by 2013.

Singapore, StarHub