StarHub Q4 net profit down 14.3% to S$80.8m

STARHUB registered a 14.3 per cent drop in net profit to S$80.8 million from S$94.2 million one year ago in its fourth quarter ended December 31, 2015. Revenue dipped 2.1 per cent to S$633.8 million during the quarter, from S$647.4 million one year ago.

Earnings per share (EPS) for the quarter was down 14.5 per cent to 4.7 Singapore cents from 5.5 Singapore cents. The company declared a final dividend of 5 Singapore cents per ordinary share, the same as last year. This takes the company's full year dividend payout to 20 Singapore cents, paid over four quarters.

For the quarter, EBITDA (earnings before interest, taxes, depreciation and amortisation)) was lower by 18.4 per cent, year-on-year, at S$157 million, from S$192.4 million, as a result of S$13.6 million lower revenue and S$23.9 million higher cash operating expenses.

StarHub recorded a half a percentage point increase in net profit for the full year to S$372.3 million from S$370.5 million, one year ago. This came on the back of a 2.4 per cent increase in revenue to S$2.44 billion from S$2.39 billion one year ago. The increase was due to higher revenue from equipment sales. Full year EPS was the same as last year, at 21.5 Singapore cents.

Based on the current outlook, the company expects its 2016 service revenue to grow in the low single-digit range and its EBITDA margin to be about 31 per cent of service revenue. It expects capex (capital expenditure) payments, excluding the S$80 million spectrum payment due in 2016, to be about 13 per cent of its total revenue. For 2016, the company expects to maintain its annual cash dividend of 20 cents per ordinary share.