StarHub net falls on higher capex

Robert Clark
10 Nov 2010


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


Robert Clark

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