StarHub's full year net profit rises 3% to $371 million

StarHub's full year net profit increased 3 per cent to $371 million despite a 3 per cent fall in revenue to $2.36 billion.

For the fourth quarter ended Dec 31, net profit dropped by 5 per cent to $83.7 million while revenue fell to $613.7 million. The decreases were contributed by lower equipment sales revenue, said the telco in a statement on Feb 6.

Service revenues for both the quarter and the full year were stable. Fourth quarter pay TV revenue increased 2 per cent to $99.7 million but decreased 3 per cent for the full year to $385.5 million.

The fall was mainly due to lower subscription revenue and advertising revenue.

Broadband revenue decreased 11 per cent to $56.3 million for the quarter compared to a year ago.

Full year broadband revenue was 4 per cent lower at S$240 million.

The broadband revenue decrease was due to intense competition in the market, said StarHub. Broadband player MyRepublic recently launched an attractive offer of 1Gbps for $49 a month in an aggressive move to gain market share.

Fixed network revenue, which includes data and internet services revenue, increased 3 per cent year on year for both the quarter and the full year. The number of triple services households grew to 227,000 households, with a 4,300 household increase last quarter.

StarHub expects 2014 service revenue to grow in the low single-digit range and the group's operating margin to be about 32 per cent of service revenue.

It proposes a dividend of five cents per share, taking its full year payout to 20 cents.

StarHub's counter closed at $4.22.