StarHub Q2 earnings shrink 21% on lower mobile, Pay TV and broadband revenue

The performance led to Starhub recommending lower interim dividend for the quarter at four cents per share, compared with five cents a year earlier.
The performance led to Starhub recommending lower interim dividend for the quarter at four cents per share, compared with five cents a year earlier.PHOTO: ST FILE

SINGAPORE - StarHub's second-quarter earnings have been hit by lower revenue.

The telco's net profit for the three months to June 30 fell by 21 per cent from a year earlier to $85.7 million, as turnover slipped 1.1 per cent to $579.1 million.

The performance led to the firm recommending lower interim dividend for the quarter at four cents per share, compared with five cents a year earlier, StarHub reported on Wednesday (Aug 02).

Pay TV saw the steepest revenue slide among its divisions, falling 7.9 per cent year-on-year to $87.9 million. The broadband segment, meanwhile, posted a 3 per cent decline in revenue at $52.8 million.

Despite an expanded total customer base, mobile revenue eased 0.9 per cent from a year earlier to $302.7 million - accounting for 52.3 per cent of the firm's total revenue in the second quarter.

The declines were partly offset by higher sales of equipment and enterprise fixed service revenue, StarHub noted.

Quarterly earnings per share fell to five cents from 6.3 cents in the second quarter of 2016, while net asset value per share came in at 22.8 cents as at June 30, up from 11.3 cents at the end of December 2016.

Earnings for the first half were down 21.2 per cent to $158.8 million, amid a 0.4 per cent drop in first half revenue to $1.17 billion.

The counter closed one cent lower at $2.70 on Wednesday, before the results were announced.