StarHub, Singapore’s second biggest telecom witnessed a 16.6% rise in its half yearly net profit, from last year’s S$172.8 million. Its latest earnings report reveal that its second quarter net profit saw an increase by 9.6 per cent year-on-year to S$108.6 million. Though, the revenue allayed 0.6% to $585.7 million, mainly due to sale of equipment.
StartHub, also reported half-yearly earnings before interest, tax, depreciation, and amortisation (EBITDA) of S$375 million, an increment of 5 per cent from last year’s S$357 million. Although, its margin was higher at 34.2 per cent versus 32.6 per cent. However, for the quarter to June 30, EBITDA was lower by 1 per cent year-on-year at S$192 million and EBITDA margin stood at 34.7 per cent.
The mobile phone service, saw a slight decrease of 2.1% to S$603.4 million. The larger customer base with higher subscription revenues didn’t outweigh lower usage of both pre-paid and post-paid mobile services. It continued to be the major contributor, accounting for 51 per cent of the total revenue.
We are pleased to note that our residential broadband revenue has continued to grow for six consecutive quarters. We are also heartened to see continued growth in our total mobile customer base, contributed not only by the sustained increase in our post-paid mobile base but also by our pre-paid base.
said StarHub CEO Tan Tong Hai.
Average revenue per user (ARPU) for post-paid mobile customers rose by SG$1, to SG$70 per month, but prepaid ARPU lessened by SG$2 to SG$16. StarHub now has a 26.7 percent mobile market share, up 0.1 percentage point since last year. Pay TV business’ revenue fell by 1.8% to S$190.3 million, caused by a lower customer base. Compared to last year, ARPU remained stable at S$51.
Enterprise fixed services made up for 17 per cent of the total revenue, overtaking pay TV as the second largest contributor. Broadband, improved 11.1 percent year on year in revenue, from SG$97.1 million to SG$107.9 million, contributing 9.2 percent of total revenue. This was largely due to increased uptake of higher-speed plans.
Our enterprise fixed services are now the second largest revenue contributor, in line with our strategy to accelerate our growth in the enterprise segment.
Tan added.
Sale of equipment was down from SG$112.7 million to SG$80.6 million for the half year, accounting for 6.8 percent of total revenue,. Primarily, due to lower sales of handsets, particularly the high-end models.
One of the major competitors of the telecom – SingTel will be releasing its financial figures next week.
