StarHub reports 16% rise in second-quarter net income

7 Aug 2013

Singaporean fixed and mobile operator StarHub has reported that net profit for the three months ending 30 June 2013 climbed 16% year-on-year to SGD101 million (USD79.7 million), although revenue dipped 1% to SGD587 million on the back of a fall in handset sales. First-half revenues of SGD1.167 billion meanwhile, marked a similar 1% drop on the previous year’s figure of SGD1.182 billion. The operator said EBITDA increased 7% for the quarter and 5% for the first half of 2013 to SGD192 million and SGD374 million, respectively; EBITDA margin as a percentage of service revenue was 34.1% in the April-June quarter (up 2.1 percentage points year-on-year) while the first-half margin reached 33.7%. Operating profit for the quarter rose 13% y-o-y to SGD125 million (+9% in 1H13, at SGD239 million), and net profit for the first six months of this year topped SGD192 million – up 10% on an annualised basis. CAPEX in January-June stood at SGD123 million, compared to SGD90 million in the corresponding period a year ago.

StarHub said its mobile division booked revenue of SGD314.7 million in the second quarter, up 3%, while first-half revenue climbed 1% to SGD616.6 million. The group closed out June with a total of 2.249 million mobile users, thanks to 32,000 net additions in the three months under review. Broadband revenue decreased 1% to SGD61.7 million for the quarter and was stable for the half-year, at SGD124.1 million. The residential broadband customer base rose by 1% y-o-y to 442,000 customers at 30 June 2013. Broadband ARPU for the quarter and half-year periods were both SGD1 lower at SGD45 per month, mainly due to higher subscription discounts offered in response to market competition. Fixed Network services revenue increased 2% for the quarter and 3% for the half-year to SGD90.0 million and SGD178.3 million, respectively. Second-quarter Data and Internet revenue expanded by 1% y-o-y to SGD73.2 million, and increased by SGD2.0 million to SGD145.2 million in H1 2013, fuelled by higher take-up of its internet and Next Gen NBN services, which was partially offset by lower revenue from leased circuits businesses. Voice services revenue of SGD16.8 million for the quarter was SGD1.6 million or 11% up on 2Q12, while for the half-year period, voice revenues increased 11% to SGD33.1 million, it said.

Singapore, StarHub