StarHub Q1 earnings slid 21.3%, 4 cent interim dividend recommended

StarHub saw only 0.2 per cent year on year growth to S$592.3 million in its revenue for the three months to March 31.
StarHub saw only 0.2 per cent year on year growth to S$592.3 million in its revenue for the three months to March 31. PHOTO: ST FILE

SINGAPORE - StarHub reported a 21.3 per cent slide in its first quarter net profit to S$73.1 million, due partly to a lack of income grant while operating revenue growth was flat.

The second biggest telco operator in Singapore saw only 0.2 per cent year on year growth to S$592.3 million in its revenue for the three months to March 31.

But operating profit of S$93.9 million was down 20.02 per cent, as other income dropped S$12.3 million from a year ago when the company received the Next Generation National Broadband Network grant from the government, StarHub said when announcing its latest results on Wednesday (May 3).

Meanwhile, StarHub's core business performance was mixed. The mobile segment, which was half of the company's revenue, generated turnover of S$296.2 million in the first quarter, down 0.6 per cent year on year.

The total mobile customer base of 2.29 million was higher than 2.20 million a year ago, but lower compared with 2.31 million in the fourth quarter.

Pay TV revenue was down 6.8 million year on year to S$88.4 million while enterprise fixed service revenue rose 2.9 per cent to S$98.7 million. Broadband revenue growth was 0.5 per cent, to S$53.7 million.

An interim dividend of four cents a share was recommended, down from five cents a year ago.

StarHub maintains its forecast on 2017's service revenue to be at around last year's level.