StarHub’s fourth quarter net income slides on rising costs

17 Feb 2016

Singaporean integrated service provider StarHub has reported a 14.3% year-on-year decline in net profit for Q4 2015 to SGD80.8 million (USD57.6 million), as revenue slipped 2.1% to SGD633.8 million, EBITDA dropped 18% to SGD157.0 million and operating expenses rose 3.9% to SGD555.7 million. The operator, which had earlier reported a 21.5% surge in net income for 3Q15 to SGD118.7 million, said its fourth quarter results were impacted by lower revenue from services and equipment sales plus higher costs of services and traffic expenses. Mobile turnover, which contributes almost 50% of total service revenue, slipped 2.3% to SGD313.0 million, it said, on the back of falling pre-paid and roaming sales. Nevertheless, the carrier reported 5,400 net post-paid additions in Q4 for a total of 1.325 million (61% of the total) as the overall mobile user base edged up to 2.188 million from 2.177 million. Average revenue per post-paid user was SGD72 per month in the period under review, SGD1 higher than in the corresponding period of 2014.

StarHub reported falling broadband revenue for full-year 2015 to SGD200.3 million from SGD201.9 million in FY 2014, despite Q4 sales rising marginally to SGD52.1 million from SGD51.1 million in Q3. Average monthly churn climbed to 1.1% in the fourth quarter, it said, as the broadband subscriber base fell a net 1,000 to 476,000 users. Fourth-quarter pay-TV service revenue was SGD100 million, just 0.1% down from a year earlier, due to lower subscription revenue after a net churn of 6,200 subscribers in the quarter, which left a base of 536,000 subscribers. Fixed network services revenue fell 2.9% in the fourth quarter to SGD98 million, on lower data and internet services turnover and lower usage of voice services.

According to TeleGeography’s GlobalComms Database, StarHub is 56.49%-controlled by Asia Mobile Holdings, a venture which includes Ooredoo (formerly known as Qatar Telecom [Qtel]) and Singapore Technologies Telemedia (STT).

Singapore, StarHub