SINGAPORE - StarHub posted a profit and revenue dip for the second quarter, hit by lower broadband and mobile services sales.

Net profit for the three months to June 30 slid 6 per cent to $94.3 million year-on-year, while revenue declined by 2 per cent to $576.4 million.

Its broadband business shrank by 17 per cent to $51 million in the quarter compared with the year-ago period due to intensified competition in the sector.

Mobile services - which made up half of total service revenue - also slid 1.4 per cent to $310.3 million year-on-year. Any increase in its postpaid revenue failed was offset by lower revenue from its prepaid mobile services.

During the quarter, the telco added 14,000 postpaid customers bringing its base to 1.2 million.

It also lost 71,000 prepaid users during the quarter, lowering its prepaid base to just over 1 million. The drop was due to a law in April that allows consumers to have only three prepaid phone SIM cards at a time, down from 10 previously.

Pay TV revenue, however, grew 3 per cent to $98.4 million year-on-year. StarHub added 2,000 pay TV customers during the quarter. It had 535,000 pay TV users as at June 30.

An interim cash dividend of five cents a share was declared for the second quarter. The telco intends to maintain its annual cash dividend payout of 20 cents per share for this year.

However, it revised its service revenue outlook for the year to be at last year's level. It had earlier expected service revenue to grow at "a low single digit".

StarHub shares closed six cents higher at $4.23. The results were announced after market closed.