Singapore, 6 August 2019 – StarHub, a leading Singapore company that delivers world-class communications, entertainment, cyber security, info-communications solutions and digital services to consumers and enterprises, today announced its unaudited consolidated results for the quarter and six months ended 30 June 2019.
For both periods, the Company delivered strong double-digit growth in Enterprise Business revenue, powered by a 161.4% year-on-year (YoY) cyber security revenue jump in 2Q2019 and 92.5% YoY increase in 1H2019, which offset the lower revenues from the Consumer businesses.
Commenting on the results, StarHub’s Chief Executive Peter Kaliaropoulos said, “The quarter saw greater competitive intensity in the consumer mobile market with the entry of new MVNOs and the launch of our all-digital mobile brand – giga. Whilst our pre-paid customer base is stable compared to the previous quarter, post-paid customers grew by 2.7% from 1Q2019 and a total of 2.267 million customers are enjoying services delivered on fast, 4.5G LTE-A Pro network. 2Q2019 mobile revenue is stable compared to 1Q2019 despite aggressive price competition across the market.”
“Migration to fibre TV is expected to conclude by end of September. Consumers continue to explore various content options in the market and a lower customer base is impacting revenue with an 8.5% drop for 2Q2019 compared to 1Q2019. We continue to offer more unique content across 7 entertainment passes and allow customers freedom to view the entire collection of channels for the same subscription every month. On our Pay TV base, we now have 374,000 customers, after the quarter’s net reduction of 20,000 customers. However, we registered the highest net adds growth in the last six quarters with 14,000 new residential households taking up broadband to reach a total of 509,000 services at the end of 2Q2019.”
“In the Enterprise segment, we continue to grow due to higher demands for cloud, voice and data network services, digital and cyber security solutions; revenue grew by 4.6% in 2Q2019 compared to 1Q2019,” continued Mr. Kaliaropoulos.
“We continue to transform our operations and ensure cost optimisation initiatives fund the growth of new digital services including, our giga mobile brand and our cyber security initiatives. In 1H2019, we also incurred one-off costs of S$7 million associated with the migration of cable to fibre. Excluding cyber security losses and cable migration cost, our profits in 1H2019, would have been S$108 million compared to S$120 million (adjusted) in 1H2018, which is lower by 10.1% YoY.”
“One of our key strategic transformation goals is to improve our customers’ experience. We are proud to note from the recent national CSISG study that StarHub customers’ satisfaction levels have surged across our Mobile, Broadband and TV services. We are encouraged by such recognition and will strive to do even more to improve our customers experience with our brand,” Mr Kaliaropoulos concluded.
Key Financial Highlights
Key Business Highlights
Based on the current outlook, we expect the Group’s 2019 service revenue to be stable to a decline of 2% YoY. Group service EBITDA margin is expected to be between 30% to 32% (after SFRS(I) 16 adoption).
In 2019, CAPEX commitment, excluding spectrum payment of S$282.0 million, is expected to be between 11% to 12% of total revenue. The Group intends to pay-out at least 80% of net profit attributable to shareholders (adjusted for one off, non-recurring items), as dividend. For FY2019, the Group intends to pay a dividend of at least 9 cents per ordinary share, at a rate of 2.25 cents per quarter. Any payment above 9 cents would occur in the last quarterly payment.
For more details on the Group's performance for 2Q & 1H2019 and outlook for FY2019, please visit www.starhub.com/ir. Materials available at this website include the audio conference link, investor presentation and unaudited results for the 2Q & 1H ended 30 June 2019.