Singapore, 5 May 2016 – StarHub Ltd today announced its results for the quarter ended 31 March 2016.
For the quarter, the Group’s EBITDA increased 13% to S$183 million from S$162 million previously. Correspondingly, EBITDA margin was higher at 33.8% versus 30.0% a year ago. Net profit after tax was also higher by 26% at S$93 million year-on-year (YoY). Service revenue was slightly higher YoY at S$542 million while total revenue was 4% lower YoY at S$591 million due to the lower revenue from sale of equipment.
StarHub also saw a significantly improved free cash flow for the quarter, a positive S$90 million compared to the negative S$46 million YoY. It also had cash CAPEX which was 57% lower at S$42 million compared to the same period last year.
For the quarter, StarHub achieved customer growth for both pre and post-paid Mobile and also grew revenue for Broadband and Enterprise Fixed services. Broadband revenue registered 11% growth YoY whilst Enterprise Fixed revenue grew 5% YoY. In terms of total revenue mix, Mobile continued to be the major contributor at 50%. Pay TV, Broadband, Enterprise Fixed services and Sales of Equipment contributed 16%, 9%, 16% and 8% respectively.
“StarHub’s continual focus on our customers’ needs have paid off, not only in our business results but also in the latest third-party CSISG findings which measured customer satisfaction across sectors in Singapore. We are pleased to see our steadfastness in customer service, translated into StarHub being consistently ranked higher than the industry average across all lines of business. We even clinched top honours for Pay TV and Broadband, and came in a close second in the Mobile category,” said Mr Tan Tong Hai, CEO of StarHub.
“In the quarter, our attractive Hubbing packages helped maintain low churn rates across all our lines of business. We are especially pleased to see continued growth in our Broadband revenue for the fifth sequential quarter. We also witnessed a steady increase in the Enterprise Fixed revenue, and are on track to grow this business to be the second largest contributor to our growth story,” added Mr Tan.
Outlook for FY2016
Based on the current outlook, we maintain the Group’s 2016 service revenue to grow in the low single-digit range and Group EBITDA margin at about 31% of service revenue. We expect our CAPEX payments, excluding the S$80 million spectrum payment due in 2016, to be about 13% of our total revenue. For 2016, we intend to maintain our annual cash dividend of 20 cents per ordinary share.
Following the close of the Company’s Annual General Meeting on 19 April 2016, 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 2015. The dividend will be paid on 6 May 2016.
For 1Q2016, the Company declares an interim dividend of 5 cents per ordinary share which will be paid on 27 May 2016.
For more details on the Group's performance for 1Q2016 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 31 March 2016.