Singapore, 6 May 2010 – StarHub Ltd today announced its results for the quarter ended 31 March 2010. Total operating revenue increased 5% to S$557 million from S$531 million. The quarter saw a high post-paid mobile net add of 27,000 customers. The higher investment cost for acquisition and retention for smartphone customers resulted in the Group’s EBITDA contracting to S$118 million. Consequently, profit before taxation was at S$53 million year-on-year (YoY) and net profit after tax decreased to S$43 million. Free cash flow at S$120 million was 4% higher compared to last year’s S$115 million. Capital expenditure was 4% lower at S$49 million compared to the same period last year.
|S$ million||Quarter ended 31 March|
|Profit from operations||58||107||(46)|
|Profit after tax||43||82||(48)|
|FCF / Share (Diluted) (Cents)||6.97||6.71||4|
Financial and Business Highlights
Mobile revenue registered the highest growth for the quarter at 8% YoY. This was followed by Fixed Network services revenue at 1%. In terms of total revenue mix, Mobile continued to be the major contributor at 51%. Pay TV, Broadband, Fixed Network Services and Sales of Equipment contributed 18%, 11%, 14% and 6% respectively to the revenue mix.
Following the close of the Company’s Annual General Meeting on 16 April 2010, the Company declared a final dividend of 5 cents per share on a one-tier tax exempt basis in respect of the financial year ended 31 December 2009. The dividend will be paid on 7 May 2010.
Outlook for FY2010
Based on the current outlook, we maintain the YoY growth of our Group’s 2010 operating revenue to be in the low single digit range and revised our Group EBITDA margin to be around 28% on service revenue. We maintain that the total capex payment for FY2010 will not exceed 14% of operating revenue. Cash dividend payout remains at a minimum of 5 cents per ordinary share per quarter for FY2010.
“Even though the higher investment cost for acquisition and retention for smartphone customers have affected profitability during this quarter, we expect higher benefits to accrue in subsequent periods,” said Mr Neil Montefiore, CEO of StarHub. “Our investments in networks and content continue to strengthen our Hubbing strategy resulting in a 9% increase in triple-service households.”
For more details on the Group's performance for 1Q2010 and outlook for FY2010, 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 31 March 2010.
- END -
“Some of the statements in this news release constitute ‘forward-looking statements’ that do not directly or exclusively relate to historical facts. These forward-looking statements reflect StarHub Ltd’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside StarHub Ltd’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from StarHub Ltd’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution."