StarHub’s first-quarter income sinks 24%

5 May 2021

Singaporean fixed and mobile operator StarHub has released its business performance update for the January-March 2021 quarter, with total revenue falling 3.8% year-on-year to SGD487.1 million (USD364.9 million) and net profit attributable to shareholders plunging 24.0% to SGD30.5 million. Service EBITDA also declined, by 8.2% (to SGD115.4 million), as the company noted its performance had been impacted by COVID-19 in tandem with lower mobile revenues, which was only partially offset by lower operating costs and higher ‘other’ income. Service revenue (excluding equipment sales) came in at SGD375.7 million for the quarter, down 7.2% y-o-y, with new CEO Nikhil Eapen noting in his statement: ‘While the first quarter of 2021 remains challenging with ongoing travel restrictions and headwinds from global pandemic, we remained focused on our strategic and transformation objectives’.

Nevertheless, StarHub saw consumer mobile service revenue falling 20.8% to SGD129.6 million, amid ‘intense’ competition, as its contract user base shrank from 1.47 million to 1.42 million and post-paid monthly ARPU slipped to SGD28 from SGD34 in 1Q20. Pay-TV revenues, meanwhile, declined 4% y-o-y as the customer base dropped to 306,000 from 327,000, and broadband users fell to 495,000 from 502,000 – despite that segment reporting 12.6% revenue growth. Adding to its woes, the company’s enterprise business segment only managed 0.9% revenue growth, to SGD154.2 million, and its cybersecurity sales shrank by 32% due to ‘project delays’.

Singapore, StarHub