Singaporean integrated telecoms service provider StarHub saw net income for the three months ending 31 December 2016 slide 33% year-on-year to SGD54 million (USD38.3 million), although revenue was stable at SGD634.8 million, it said. Meanwhile, full year profit declined by 8% on an annualised basis to SGD341.4 million as sales slipped 2% to SGD2.4 billion. The telco attributed the fall for the year to lower revenues derived from the sale of equipment and services. Furthermore, quarterly EBITDA dropped 14% y-o-y to SGD135.7 million for 4Q16, it said, while full-year EBITDA slipped by 3% from SGD713.0 million to SGD690.1 million. EBITDA margin was 24% for the quarter (down 3.9 percentage points) and 31% for the year (+1 pp).
Mobile continues to generate the lion’s share of income, although yet again StarHub saw a downturn in sales in FY 2016, with annual revenue declining by 2% y-o-y to SGD1.215 billion and quarterly turnover down 0.4% at SGD311.8 million. The carrier noted that post-paid ARPU decreased by SGD2 to SGD70 for the quarter, while pre-paid ARPU fell by a similar amount for the quarter to SGD15. StarHub closed out December 2016 with a total of 2.307 million mobile users, up from 2.188 million a year earlier, of which 60% are on post-paid accounts. The group’s pay-TV business also took a pounding, with Q4 revenue slipping 6% to SGD93.9 million and full year sales down 3% to SGD377.8 million, as the number of subscriptions fell to 498,000 from 536,000 at end-2015. Meanwhile, broadband revenue increased by 4% and 8% for the quarter and year, respectively, to SGD54.2 million and SGD216.8 million, driven by the higher mix of customers on fibre and take-up of higher speed cable plans. Nevertheless, the total number of broadband users was down by a net 3,000 y-o-y at 473,000.
Commenting on the results, StarHub CEO Tan Tong Hai said: ‘Despite increased competition, we have registered growth in key areas. Mobile, which accounts for half of our total revenue, showed resiliency as we saw an increase in subscriber base and data revenue. Momentum for our Broadband revenue was maintained and we also witnessed a consistent revenue growth in our Enterprise Fixed business.’