StarHub Q3 net income surges 21.5%, buoyed by strong smartphone sales

11 Nov 2015

Singapore’s second largest telecoms operator by subscribers and revenue, StarHub, has reported a 21.5% surge in net profit for the three months ended 30 September to SGD118.7 million (USD83.4 million), from SGD98.0 million in 3Q14, bolstered by increased smartphone sales. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 4% to SGD199.1 million in July-September from SGD191.0 million in 3Q14, and year-to-date EBITDA reached SGD555.7 million (unchanged). Revenue for the period, however, stalled at SGD603.1 million, up just 1.9% year-on-year, as mobile sales – which contribute a little over half of StarHub’s revenue – declined 0.1%, which the operator noted was the result of post-paid user growth failing to offset a decline in PAYG users. Nevertheless, StarHub booked increased post-paid customer ARPU for the quarter of SGD71 per month, up SGD3 quarter-on-quarter, which it said resulted from ‘new tiered 4G plans with higher monthly subscriptions and higher data usage’. ARPU for pre-paid customers was unchanged at SGD18.

Turnover from broadband and fixed network services climbed 4% y-o-y, as StarHub added a net 2,100 high speed internet customers for a total of 477,000, and fixed network returns climbed as a result of rises in enterprise internet subscriptions and managed services – offset by a 6% fall in voice services revenue. Fixed ARPU fell during the quarter, continuing a trend experienced throughout this year. Further, pay-TV revenue dipped 0.2% y-o-y to SGD97.2 million in the face of lower advertising spend, but the carrier revealed it is in talks with entertainment streaming service Netflix over plans to enter the Singaporean market early next year.

Singapore, StarHub