StarHub Q2 profit drops 21%; revenue down too

3 Aug 2017

Singapore fixed and mobile operator StarHub has published its financial results for the three months ending 30 June 2017, reporting a 21% fall in net profit to SGD85.6 million (USD63 million), down from SGD109.0 million in Q2 2016, as total revenue dipped 1% year-on-year to SGD579.1 million, and service revenue fell 2% to SGD542.6 million from SGD553.7 million. The city-state’s second largest operator reported a fall in revenue for mobile (down 0.9%), pay-TV (down 7.9%) and broadband (down 3.0%) services, with only enterprise fixed services improving – albeit marginally to SGD99.2 million from SGD98.6 million. EBITDA in 2Q17 stood at SGD180 million, down 6.0% from SGD192 in the corresponding period of 2016; EBITDA margin was 33.2%, down 1.5 pp y-o-y.

StarHub’s pay-TV unit saw the steepest revenue drop, down to SGD87.9 million from SGD96.4 million, as its subscriber base shrank by 10,000 quarter-on-quarter to 477,000, and down from 518,000 at 2Q16. In its earnings brief, StarHub noted: ‘In our pay-TV business, we face challenges from growing piracy and alternative viewing options,’ referring to the likes of Netflix – which launched in Singapore in January last year – and Amazon Prime, amongst others. Second-quarter Broadband services revenue of SGD52.8 million compared to SGD54.4 million in the year-ago period, with the operator also reporting a fall in high speed internet subscriptions to 467,000 from 473,000 at 30 June 2016. StarHub said it anticipates ‘prolonged competition’ for its broadband business and has introduced a new plan to cater to customers requiring faster speeds. Meanwhile, the carrier’s Mobile business – which accounts for 52.3% of total revenue – booked second-quarter turnover of SGD302.7 million, compared to SGD305.3 million in 2Q16, as it closed out June with a total of 2.290 million mobile subscribers, up from 2.235 million previously. StarHub noted that the fall in Q2 revenue was mainly due to the lower usage revenue from voice, IDD and roaming services.

Singapore, StarHub