StarHub quarterly profit drops as mobile subscriber base dwindles

Telecoms service provider StarHub on Thursday reported an 11.5 percent fall in third-quarter net profit, hurt by lower revenues from voice, broadband and pay TV services.

StarHub takes 9% stake in mm2 Asia to drive pay TV offerings in Singapore
A man talks on his mobile phone as he walks past a StarHub shop in Singapore

Telecoms service provider StarHub on Thursday reported an 11.5 percent fall in third-quarter net profit, hurt by lower revenues from voice, broadband and pay TV services.

Net profit attributable to shareholders of StarHub, which competes with mobile phone operators such as Singtel and M1, declined to S$76.2 million in the three months ended September 30 from S$86 million a year earlier.

Revenue dropped about 1 percent to S$580.4 million in the quarter, the company said in a regulatory filing released after market hours.

The fall in overall revenue was due to lower service revenues from Mobile, Pay TV and Broadband services, along with lower sales of equipment, the company said.

Mobile revenue - accounting for half of total revenue - slid 0.8 percent to S$297 million in the quarter due to lower voice, international direct dialing and outbound roaming usage.

Third-quarter pay-TV service revenue dipped 8.5 percent to S$85.7 million, owing to a lower subscriber base.

Post-paid mobile ARPU was stable at S$69 in the quarter. ARPU or average revenue per minute is a key indicator for telecom companies' earnings.

StarHub lost 23,000 post-paid mobile customers in the quarter, bringing its base to 1,362,000 subscribers.

Last month, rival M1 said it expects full-year profit to fall after posting a near 5 percent fall in third-quarter profit, citing higher depreciation and interest expenses.

StarHub shares closed 0.4 percent lower at S$2.65 on the Singapore Exchange. The stock has lost nearly 6 percent so far this year.

StarHub takes 9% stake in mm2 Asia to drive pay TV offerings in Singapore
A man talks on his mobile phone as he walks past a StarHub shop in Singapore

Telecoms service provider StarHub on Thursday reported an 11.5 percent fall in third-quarter net profit, hurt by lower revenues from voice, broadband and pay TV services.

Net profit attributable to shareholders of StarHub, which competes with mobile phone operators such as Singtel and M1, declined to S$76.2 million in the three months ended September 30 from S$86 million a year earlier.

Revenue dropped about 1 percent to S$580.4 million in the quarter, the company said in a regulatory filing released after market hours.

The fall in overall revenue was due to lower service revenues from Mobile, Pay TV and Broadband services, along with lower sales of equipment, the company said.

Mobile revenue - accounting for half of total revenue - slid 0.8 percent to S$297 million in the quarter due to lower voice, international direct dialing and outbound roaming usage.

Third-quarter pay-TV service revenue dipped 8.5 percent to S$85.7 million, owing to a lower subscriber base.

Post-paid mobile ARPU was stable at S$69 in the quarter. ARPU or average revenue per minute is a key indicator for telecom companies' earnings.

StarHub lost 23,000 post-paid mobile customers in the quarter, bringing its base to 1,362,000 subscribers.

Last month, rival M1 said it expects full-year profit to fall after posting a near 5 percent fall in third-quarter profit, citing higher depreciation and interest expenses.

StarHub shares closed 0.4 percent lower at S$2.65 on the Singapore Exchange. The stock has lost nearly 6 percent so far this year.

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