Krishna Baidya’s Random Musings

Starhub Q2 Revenues Stable – Profits Up

Posted on: August 7, 2009

Singapore’s Starhub has reported that its second-quarter operating revenue was stable at S$532 million compared to S$531 million in Q2 2008. The Group’s EBITDA for the quarter rose 10% to S$161 million, and net profit after tax increased 21% to S$78 million.

Capital expenditure (capex) was S$24 million higher at S$70 million from a year ago.

Revenues for Fixed Network services and Mobile grew by 7% and 1% respectively. However, Pay TV and Broadband revenues contracted by 2% and 3% respectively. Mobile continues to be the major revenue contributor at 51%. Pay TV, Broadband, Fixed Network Services and Sales of Equipment contributed 19%, 11%, 15% and 4% respectively to the mix.

Mobile revenue grew 1% to S$272 million from S$269 million for the quarter. Post-paid mobile services revenue was 2% lower at S$208 million, accounting for 76% of the Mobile revenue mix. Pre-paid mobile services revenue rose 12% to S$64 million. Post-paid ARPU slipped S$8 to S$69, while pre-paid ARPU moved up S$3 to S$23. The lower post-paid ARPU was mainly attributable to decreases in voice IDD and outbound roaming usages.

“We are pleased with the results given the challenging business environment that we operate in. Our diversified revenue base has allowed us to mitigate the impact of softer demand due to the weakened economy in certain segments. Good cost containment has delivered excellent free cash flows with substantial headroom for sustaining our guidance on dividend payments,” said Mr Terry Clontz, CEO of StarHub. “However, as it is not clear whether we have yet seen the worst impact of the economic downturn on our business, we will remain diligent in looking for ways to control costs while pursuing
profitable growth.”

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