Brokers' take

StarHub Ltd | HOLD (upgraded) May 6 close: S$1.52 Fair value: S$1.64 OCBC Investment Research, May 6

StarHub's Q1 2019 results were within our expectations... The group's PATMI (profit after tax and minority interests) fell 14.2 per cent year on year to S$54 million, which constitutes 27.7 per cent of our full-year forecast. The group has declared a dividend per share of 2.25 Singapore cents, which is a steep but well-expected cut from four cents in Q1 2018.

In the mobile space, we note that the group has added 74,000 post-paid subscribers to its customer base, which we believe stems from greater SIM-only take up. Unsurprisingly, this has continued to weigh on average revenue per user (ARPU), which has dropped by S$4 year on year to S$39. Management believes this trend would likely continue until the end of 2019.