Mainboard-listed telco StarHub is still reeling from the impact of the Covid-19 pandemic on consumer demand, which has pushed down its third-quarter earnings.
Net profit came in lower by 23.3 per cent year on year to $44.5 million for the three months to Sept 30, according to financial results released yesterday.
Overall revenue fell by 14.5 per cent to $489.7 million, while service revenue - which excludes equipment sales - dropped by 10.6 per cent to $388.7 million.
Chief corporate officer Veronica Lai said in a statement that business had "a modest pickup" in the second phase of Singapore's three-stage economic reopening.
"However, our Q3 2020 performance continued to see impact from the ongoing global restrictions on travel, particularly for our mobile business," she added.
Mr Peter Kaliaropoulos, who resigned as chief executive for family reasons, left last Saturday.
StarHub's service earnings before interest, taxes, depreciation and amortisation (Ebitda) margin will most likely be weaker in the fourth quarter than in the third, the company said, citing continued pressure of border controls on revenue, and a seasonal rise in operating expenses.
The group added in its outlook statement that it expects to maintain its earlier guidance for FY2020, which projected a service revenue decline of 10 per cent to 12 per cent.
The core mobile service business' third-quarter turnover tanked, with revenue down by 29.4 per cent to $134.1 million. StarHub attributed the fall to factors such as reduced travel amid the pandemic, which ate into both post-paid and prepaid revenues.
On the bright side, enterprise business services continued to cushion the blow to the top line, posting revenue growth of 11.4 per cent to $162 million.
THE BUSINESS TIMES