StarHub's Q1 net profit rises 3.2% to S$91.2m
Telecom group StarHub posted a 3.2-percent rise in first quarter net profit to S$91.2 million from a year ago. This is despite group operating revenue falling 1.8 percent to S$580 million.
SINGAPORE: Telecom group StarHub posted a 3.2-percent rise in first quarter net profit to S$91.2 million from a year ago. This is despite group operating revenue falling 1.8 percent to S$580 million. Revenue for its mobile business fell 2 per cent to S$302 million in the quarter. StarHub attributed this to "lower post-paid revenue from inter-connect operators and roaming services in spite of an increase in subscription revenue from a larger subscriber base."
Still, the mobile unit remains as the biggest revenue contributor for the group at 52 percent. The company's fixed network services business posted the highest revenue growth for the quarter, up 4 percent on-year to S$88 million. Data and internet services accounted for 82 percent of fixed network revenue at S$72 million, while voice services revenue grew to S$16 million. StarHub said this was "primarily contributed by digital voice home services which became chargeable from fourth quarter 2012 and higher in-payments from carriers’ services, which were offset by lower IDD usages." Looking ahead, 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 percent. For the first quarter, the company has proposed an interim dividend of 5 cents per share, which will be paid on 30 May 2013. - CNA/xq
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