Starhub – Lim & Tan

• Starhub’s first quarter profits of S$91.2 million was up 3% y-o-y, in line with market expectations.
  
• Its broadband business contributed positively, with revenue growing 2% y-o-y, mainly attributable to a larger subscriber base and better plan mix.
  
• But this was partially offset by the decline in mobile revenue (-2% y-o-y) as a result of lower post-paid revenue from inter-connect operators and roaming services. Its Pay TV (-1% yo-y) also saw a small decline in revenue as a result of lower advertising revenue.
  
• The telecommunication company posted EBITDA margins of 33.3% in 1Q ’13, up from 32.2% in 1Q ’12 due to lower operating expenses from reduced cost of equipment sold and traffic expenses.
  
• For 1Q ’13, a cash dividend of 5 cents per share was declared. This translates into an annualized yield of 4.3%.
  
• Going forward, Starhub revised down its guidance for the Group’s operating revenue to grow in the lowsingle digit range y-o-y, with Group EBITDA margin expected to be about 31%. Likewise, its full year dividend guidance was maintained at 20 cents per share.