Singapore, 5 November 2008 – The third quarter of 2008 operating revenue increased 2% to S$525 million from S$513 million year-on-year (YoY). For the year-to-date (YTD), it recorded an 8% growth or S$116 million to S$1,591 million. The Group’s EBITDA for the quarter inched 1% to S$165 million. EBITDA margin as a percentage of service revenue was 32.9%. For the YTD, EBITDA registered S$479 million and EBITDA margin was at 31.6%.
For the quarter, profit from operations was 1% lower YoY at S$107 million. Net profit after tax decreased 2% to S$80 million. Free cash flow (FCF) at S$126 million was 11% higher compared to last year’s S$113 million. YTD, profit from operations was at S$304 million or 4% lower compared to the same period last year. FCF was at S$296 million, 29% lower than last year’s S$416 million.
Capital expenditure (capex) was S$17 million higher at S$60 million compared to S$44 million a year ago. YTD, it was 51% higher at S$165 million.
Profit from operations
Profit after tax
EPS (Diluted) (Cents)
FCF / Share (Diluted) (Cents)
3Q & YTD 2008 Financial & Business Highlights
For the third consecutive quarter this year, Pay TV revenue registered the highest growth - a 15% YoY lift. Broadband revenue grew 1%, while Fixed Network services increased 2%. Mobile revenue slipped 1%. YTD, Pay TV revenue grew 21%, Fixed Network services increased 7%, Mobile revenue recorded 6% growth and Broadband revenue went up by 2%.
YTD, Mobile continues to be the major revenue contributor at 51%. Pay TV, Broadband, Fixed Network Services and Sales of Equipment contributed 19%, 12%, 14% and 5% respectively to the mix.
"The third quarter results were well in line with our internal targets. We were able to grow our customer base while delivering a respectable set of financial results in this highly unpredictable operating environment against a slowing economy and volatile financial markets accompanied by variable competitive intensity. We also continued to invest in new capabilities and services that position the company well for the future, while our cash position and capital structure remain in safe territory," said Mr Terry Clontz, CEO of StarHub.
Outlook for FY2008
Based on the current outlook, barring any unforeseen circumstances and changes in the economic and market conditions, we expect the Group’s 2008 operating revenue growth will be around 7% YoY. Blended EBITDA margin on service revenue is expected to be around 31%, and the 2008 cash capital expenditure is not expected to exceed 12% of operating revenue. We also maintain our commitment to pay a minimum annual cash dividend for FY2008 of 18.0 cents per ordinary share.
For more details on the Group's performance for 3Q2008 and outlook for FY2008, please visit www.starhub.com/ir. Materials available at this website include the audio conference link, investor presentation and unaudited results for the quarter ended 30 September 2008.