StarHub's Q1 net profit increases 3%, but pay-TV revenue drops 1%
Louise Duffy | 11-05-2013
Singaporean telco StarHub has reported a 3% rise in Q1 net profit to S$91 million, compared with the same period a year ago.
However, its group operating revenue for the period fell 2% to S$580 million.
The group's main revenue stream, mobile services, decreased 2% to S$302 million, which the company put down to lower post-paid revenue from inter-connect operators and roaming services despite an increase in subscription revenue from a larger subscriber base.
Post-paid mobile services revenue decreased 2 per cent to $241 million, accounting for 80% of the mobile revenue mix. Its total mobile subscriber base, about half of whom were pre-paid customers, grew 17,000 to 2.2 million.
Pay-TV revenue decreased 1% to S$95 million, which StarHub said was a result of lower advertising revenue which was partly mitigated by higher subscription revenue from both commercial and residential customers. Customer base decreased by 13,000 year-on-year to 532,000 households and the churn rate was at 1.2%. Year-on-year there was a S$1 pay-TV ARPU increase to S$52.
StarHub said it expects group operating revenue to grow in the low single-digit range year-on-year.
Meanwhile, group earnings before interest, tax and depreciation (EBITDA) margin as a percentage of service revenue is expected to be about 31%.