Starhub Q3 net profit up 2.6 per cent to S$97.7 million

STARHUB'S net profit after tax rose 2.6 per cent year-on-year to S$97.7 million in the third-quarter of 2014, although its broadband business continued to take a hit from stiff competition.

Revenue came in 2.3 per cent higher at S$592 million during the quarter, lifted by higher sales of equipment.

Total service revenue slipped 0.6 per cent to S$552.7 million, dragged by a drop in its broadband revenue despite an increase in subscriber base.

Broadband revenue for the quarter ended September dropped 17.4 per cent to S$49.2 million due to price competition.

Mobile service revenue was up 0.9 per cent to S$310.9 million for the quarter. This was attributable to higher revenue from post-paid services, which was offset by lower revenue from pre-paid services.

Compared to the same quarter last year, Starhub said its Pay TV service revenue for the quarter was 2 per cent higher at S$97.4 million, as subscription revenue rose in tandem with increased subscriber base.

For the quarter, the group's earnings before interest, tax, depreciation and amortisation (Ebitda) was higher by 2.2 per cent at S$190.9 million, compared with the corresponding period last year.

Starhub said the Ebitda margin as a percentage of service revenue went up 0.9 percentage points to 34.5 per cent for the quarter.

Earnings per share for the quarter was 5.7 Singapore cents, up from 5.5 Singapore cents in the same period last year.

Based on the current outlook, Starhub said it expects its service revenue for 2014 to be maintained at about 2013's level.

It also maintains its outlook on annual cash dividend payout of 20 Singapore cents per share for 2014.