Singapore, 10 November 2009 – The third quarter’s operating revenue increased 2% to S$537 million from S$525 million year-on-year (YoY). For the year-to-date (YTD), it recorded a 1% growth to S$1,600 million. The Group’s EBITDA for the quarter rose 5% to S$172 million. Similarly, the Group’s YTD EBITDA also saw a 5% lift. EBITDA margin as a percentage of service revenue was 33.4%. For the YTD, EBITDA registered S$501 million and EBITDA margin was at 32.6%.
For the quarter, profit from operations stood at S$111 million which was 4% higher YoY. Net profit after tax increased 7% to S$85 million.Free cash flow (FCF) at S$115 million was 8% lower compared to last year’s S$126 million. YTD, profit from operations was at S$319 million or 5% higher compared to the same period last year. FCF was at S$379 million, 28% higher than last year’s S$296 million.
Capital expenditure was S$6 million lower at S$54 million compared to S$60 million a year ago. YTD, it was 6% higher at S$175 million.
Profit from operations
Profit after tax
EPS (Diluted) (Cents)
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3Q & YTD 2009 Financial & Business Highlights
YoY, Fixed Network services’ revenue increased 6%. Mobile revenue rose 5% and pay TV revenue registered a 2% growth. Broadband revenue fell 6%. YTD, Fixed Network services increased 7%, while Pay TV revenue grew 2%. Mobile revenue recorded 1% growth and Broadband revenue slipped 4%.
YTD, Mobile continues to be the major revenue contributor at 51%. Pay TV, Broadband, Fixed Network Services and Sales of Equipment contributed 19%, 11%, 15% and 4% respectively to the mix.
"It has been a good quarter performance despite the challenging environment. Although recent news about BPL has created some concerns about StarHub's plans, we intend to continue delivering the widest selection of branded quality content to consumers well into the future. For our customers, we reaffirm our commitment to continue bringing more value and convenience through new innovative services that we are known for, particularly through Hubbing initiatives,” said Mr Terry Clontz, CEO of StarHub. “For our shareholders, we have announced an increase in the quarterly dividend to 5.0 cents per share."
Outlook for FY2009
Based on the current outlook, barring any unforeseen circumstances and changes in the economic and market conditions, we expect the Group’s 2009 service revenue to be maintained at around the 2008 level and our 2009 blended EBITDA margin on service revenue to be around 32%. The 2009 cash capital expenditure is not expected to exceed 11% of operating revenue. In view of the expected profitability and cash flow for the remaining 2009 and into 2010, our dividend guidance is increased to pay a minimum annual cash dividend for FY2009 of 19.0 cents per ordinary share. For 3Q-2009, we will pay 5.0 cents per ordinary share as an interim dividend and looking ahead, we expect to maintain the dividend at a minimum of 5.0 cents per ordinary share per quarter.
For more details on the Group's performance for 3Q2009 and outlook for FY2009, 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 2009.