StarHub net falls on higher capex

Robert Clark
10 Nov 2010
00:00
News

Thumbnail: 

StarHub’s third quarter earnings fell 4% year-on-year thanks to continued high spending on its next-gen broadband business.

 

The no. 2 Singapore telco announced net profit of S$82.0 ($63.4m) for the third quarter, down 4% compared with the same period last year but up 41% sequentially. 

 

It maintained its outlook of year-on-year revenue growth in the low single-digit range and ebitda margin of around 28%.

 

Capital spending of S$72.0 million was up 33% over last year, and 61% higher sequentially, because of investment in NBN wholesaler Nucleus Connect and new CRM and billing systems. 

 

Ebitda was flat at S$172.4 million and the ebitda margin of 32.3% was 6.4 percentage points higher than Q2.

 

Pay TV sales declined 8% year-on-year and 16% sequentially because of increased customer churn following the World Cup and the loss of Premier League content.

 

Broadband sales fell 1% to S$58.3 million, while the mobile business grew 8% to S$298.3 million.

MORE ARTICLES ON: EarningsSingaporeStarHub

Source: 

telecomasia.net

Robert Clark

Related content