StarHub reports small rise in Q1 net profit

10 May 2013

Singapore fixed and mobile operator StarHub has reported net profit of SGD91 million (USD73.9 million) for the three months ended 31 March 2013, up 3% year-on-year, despite a 2% fall in total operating revenue to SGD580 million; service revenue flat-lined at SGD547 million, it said. Consolidated EBITDA climbed 3% y-o-y to SGD182 million in January-March 2013, compared to SGD177 million in the year-ago period, yielding pre-tax profits of SGD110 million (+3%). Free cash flow of SGD92 million was 11% lower compared to SGD104 million at end-March 2012, while first-quarter (cash) CAPEX was 15% higher at SGD47 million.

StarHub’s Fixed Network Services division boasted the highest growth of all its businesses in terms of revenue, rising by 4% y-o-y (including an 11% increase in turnover derived from voice services and a 2% rise in Data & Internet revenue), while Broadband revenue increased by 2% to SGD62.4 million from SGD61.4 million and now contributes 11% of the group’s total sales. By 31 March StarHub counted a total of 444,000 residential high speed internet connections, unchanged quarter-on-quarter, but 4,000 more than in Q1 2012. However, Mobile revenue decreased 2% on an annualised basis to SGD302 million, largely the result of lower post-paid revenue from interconnection and roaming services, and despite a rise in the overall subscriber base which helped boost overall subscription revenue. Nonetheless, Mobile still constitutes the single biggest contributor, generating 52% of StarHub’s revenue in the period under review. The company reported a total of 2.217 million mobile users at end-March thanks to Q1 net gains of 17,000.

Singapore, StarHub