Singapore, 3 August 2016 – StarHub Ltd today announced its results for the quarter and half-year ended 30 June 2016.
For the half-year, the Group’s EBITDA increased 5% to S$375 million from S$357 million previously. Correspondingly, EBITDA margin was higher at 34.2% versus 32.6% for the same period a year ago. For the quarter, the Group’s EBITDA was lower by 1% year-on-year (YoY) at S$192 million and EBITDA margin was at 34.7%. Net profit after tax for the six-month period was higher by 17% YoY at S$201 million. In 2Q2016, it was 10% higher YoY.
Comparing the half-year period, service revenue was slightly higher at S$1,096 million while total revenue was 3% lower at S$1,177 million due to the lower revenue from sale of equipment. On a quarter basis, total revenue was 1% lower at S$586 million compared to the same period a year ago.
In 1H2016, StarHub saw a 300% increase or S$227 million in free cash flow. It also had cash CAPEX which was 43% lower at S$90 million compared to the same period last year. For the quarter, free cash flow was 33% higher YoY and cash CAPEX was 23% lower YoY.
For the half-year period, StarHub achieved customer growth for both pre and post-paid Mobile and also grew revenue for Broadband and Enterprise Fixed services. In 1H2016, Broadband revenue registered 11% growth YoY whilst Enterprise Fixed revenue grew 4% YoY. In terms of total revenue mix for the half year, Mobile continued to be the major contributor at 51%. Enterprise Fixed services have now over taken Pay TV as the second largest contributor at 17%. Pay TV, Broadband, and Sales of Equipment contributed 16%, 9% and 7% respectively.
“We are pleased to note that our residential Broadband revenue has continued to grow for six consecutive quarters. We are also heartened to see continued growth in our total Mobile customer base, contributed not only by the sustained increase in our post-paid Mobile base but also by our pre-paid base,” said Mr Tan Tong Hai, CEO of StarHub. “Our Enterprise Fixed services are now the second largest revenue contributor, in line with our strategy to accelerate our growth in the Enterprise segment.”
Outlook for FY2016
Based on the current outlook, we revised the Group’s 2016 service revenue to be at about 2015’s level and Group EBITDA margin at about 32% of service revenue. We expect our CAPEX payments to be about 13% of our total revenue, excluding the spectrum payment due in 2016. For 2016, we intend to maintain our annual cash dividend of 20 cents per ordinary share.
For more details on the Group's performance for 2Q & 1H2016 and outlook for FY2016, 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 June 2016.