StarHub – BT

StarHub’s Q3 net profit declines 7.6% to $75.8m

But operating revenue increases 3.6% to $572.2m

STARHUB’S third-quarter net profit fell 7.6 per cent to $75.8 million from $82 million a year ago.

Earnings per share for the three months ended Sept 30 dipped to 4.42 cents from Q3 2010’s 4.78 cents.

At the same time, Singapore’s second largest telco grew operating revenue by 3.6 per cent to $572.2 million, from $552.3 million.

StarHub saw turnover edge up slightly at three of its four business segments during the quarter, except in fixed network services.

Mobile revenue, which makes up more than half of StarHub’s topline, rose 3 per cent to $307.4 million from $298.3 million.

Pay-TV and broadband services also grew turnover by 1 per cent and 3.3 per cent, respectively, to $93.4 million and $60.2 million.

StarHub has scored 5,000 new Pay-TV customers since Q3 2010, but lost 2,000 customers since the last quarter due to the conclusion of a three-month promotional period.

It also added 26,000 more broadband customers since Q3 2010.

Fixed network services was the only segment where revenue declined, slipping 4 per cent to $81.7 million from $85.1 million.

StarHub enjoyed higher equipment sales during the July-September period, taking in $29.5 million, a 62.6 per cent increase from $18.2 million last year.

It chalked up the increase due to a higher mix of smart phones and tablets which had higher selling prices.

StarHub announced an interim dividend of 5 cents per share.

The telco maintained its full-year outlook that revenue growth will be in the low single-digit range and Ebitda margins on service revenue will be about 30 per cent.

In an update on the demand for Next-Generation Nationwide Broadband Network (NGNBN) work services, StarHub said it has seen low corporate take-up in part because of delays in provisioning.

‘There is strong demand from our customers but corporate take-up of NGNBN has been slow because of how it has been rolled out,’ said StarHub CEO Neil Montefiore in a conference call yesterday.

There have been difficulties in accessing commercial buildings, explained CFO Tan Tong Hai.

And even when fibres have been laid, they may not work – a turn-off for many corporate customers which prize timeliness and quality of service, much more than residential consumers do.

StarHub is currently in talks with various parties on how to iron out the operational roadblocks.

StarHub ended trading yesterday down two cents at $2.86.

StarHub – BT

StarHub’s Q3 net profit declines 7.6% to $75.8m

But operating revenue increases 3.6% to $572.2m

STARHUB’S third-quarter net profit fell 7.6 per cent to $75.8 million from $82 million a year ago.

Earnings per share for the three months ended Sept 30 dipped to 4.42 cents from Q3 2010’s 4.78 cents.

At the same time, Singapore’s second largest telco grew operating revenue by 3.6 per cent to $572.2 million, from $552.3 million.

StarHub saw turnover edge up slightly at three of its four business segments during the quarter, except in fixed network services.

Mobile revenue, which makes up more than half of StarHub’s topline, rose 3 per cent to $307.4 million from $298.3 million.

Pay-TV and broadband services also grew turnover by 1 per cent and 3.3 per cent, respectively, to $93.4 million and $60.2 million.

StarHub has scored 5,000 new Pay-TV customers since Q3 2010, but lost 2,000 customers since the last quarter due to the conclusion of a three-month promotional period.

It also added 26,000 more broadband customers since Q3 2010.

Fixed network services was the only segment where revenue declined, slipping 4 per cent to $81.7 million from $85.1 million.

StarHub enjoyed higher equipment sales during the July-September period, taking in $29.5 million, a 62.6 per cent increase from $18.2 million last year.

It chalked up the increase due to a higher mix of smart phones and tablets which had higher selling prices.

StarHub announced an interim dividend of 5 cents per share.

The telco maintained its full-year outlook that revenue growth will be in the low single-digit range and Ebitda margins on service revenue will be about 30 per cent.

In an update on the demand for Next-Generation Nationwide Broadband Network (NGNBN) work services, StarHub said it has seen low corporate take-up in part because of delays in provisioning.

‘There is strong demand from our customers but corporate take-up of NGNBN has been slow because of how it has been rolled out,’ said StarHub CEO Neil Montefiore in a conference call yesterday.

There have been difficulties in accessing commercial buildings, explained CFO Tan Tong Hai.

And even when fibres have been laid, they may not work – a turn-off for many corporate customers which prize timeliness and quality of service, much more than residential consumers do.

StarHub is currently in talks with various parties on how to iron out the operational roadblocks.

StarHub ended trading yesterday down two cents at $2.86.

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