StarHub Q3 profit grows 21.5% on equipment sales, one-time gain
STARHUB'S net profit rose 21.5 per cent in the third quarter on higher equipment sales and a one-time gain from the deconsolidation of a subsidiary.
The telco's net earnings rose to S$118.7 million, or 6.9 Singapore cents per share, for the quarter ended September. For the first nine months of 2015, net profit gained 5.5 per cent to S$291.5 million, or 16.9 Singapore cents per share.
The company will maintain an interim dividend payout of 5 Singapore cents per share for the quarter. The cumulative full-year dividend is expected to remain at 20 Singapore cents per share.
Total revenue during the quarter rose 1.9 per cent to S$603.1 million as equipment sales grew 14.4 per cent to S$44.9 million.
Service revenue increased by one per cent to S$558.2 million as fixed-network services turnover grew 4.3 per cent to S$99.3 million and broadband revenue rose 3.8 per cent to S$51.1 million. Mobile revenue, however, was lower by 0.1 per cent at S$310.6 million, and pay TV sales shrank by 0.2 per cent to S$97.2 million.
StarHub also booked a S$15 million gain in non-operating income that significantly lifted its bottom line. That gain was a result of deconsolidating SHINE Systems Assets, a unit in which Singapore Technologies (ST) Telemedia took a 70 per cent stake as part of the MediaHub project. ST Telemedia's investment in SHINE was S$36.9 million.
StarHub said it expects service revenue in 2015 to be maintained at about the 2014 level, with group earnings before interest, tax, depreciation and amortisation margin to be about 32 per cent of service revenue. Capital expenditure is expected to be about 13 per cent of total revenue.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Volkswagen workers vote decisively to unionise in Tennessee
Sony deal for Paramount would draw added regulatory scrutiny
Bitcoin 'halving' has taken place: CoinGecko
Lululemon to shutter Washington distribution center, lay off 128 employees
Wall Street bonus rules return to regulatory agenda in third try
Honda to invest US$808 million in Brazil by 2030