StarHub profit falls 2% in 2014

Dylan Bushell-Embling
27 Feb 2015
00:00

Singapore's StarHub has reported a 2% decline in net profit for 2014, as increased price competition took a chunk out of the operator's broadband revenue.

Profit for the year decreased to S$370.5 million ($373.2 million). Service revenue dipped 1% to S$2.2 billion.

Mobile revenue was flat at S$1.25 million, with post-paid ARPU declining to S$69 and prepaid ARPU falling S$1 to S$17.

Broadband revenue slumped 17% for the full year to S$201.9 million. For the fourth quarter, revenue fell 16% to S$47. million, even as the company increased its residential customer base by 5% to 469,000.

While price competition in the broadband market impacted revenue, StarHub was able to lower its mobile churn rate for the fourth quarter to 0.8%.

Fixed network revenue by contrast grew 3% in 2014 and 4% in the fourth quarter. Voice services revenue fell 11% to S$57.4 million due to ongoing mobile substitution. Pay TV revenue increased 1% in 2014 to S$389.7 million.

StarHub increased its triple-play customer base to 242,000 households by the end of 2014, with net additions of 4,000 households during the fourth quarter. The total number of hubbing households with at least one StarHub service meanwhile reached 774,000.

“We saw healthy growth in our customer base across all lines of business even though competition was intense. The low churn rates across our businesses bear testament to our effective and proactive customer retention initiatives,” StarHub CEO Tan Tong Hai commented.

“Our hubbing strategy has served us well. Looking ahead, we aim to further integrate our hubbing services to address the convergence of our customers’ work and lifestyle needs.”

Related content

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.