StarHub Q2 profit down 22%

13 Aug 2018

Singapore's StarHub has reported a 22% year-on-year decline in net profit for the second quarter to S$63 million ($45.8 million), in part due to growing competition in the consumer segment.

Total revenue for the quarter grew 5% to S$597 million, with service revenue up 1% to S$467 million.

But mobile revenue fell 7% year-on-year to S$214 million, while pay TV revenue declined 5% to S$85 million. Broadband revenue remained flat at S$46 million.

By contrast, enterprise fixed line revenue jumped 22% year-on-year to S$234 million, with managed services revenue surging 175% to S$40 million. But ongoing voice substitution led to a 26% decline in voice services revenue to S$8 million.

“Revenue growth from the enterprise segment was driven by customer acquisitions, growth in data usage and fixed services, and higher demand for managed services and cyber security solutions. [But] the increasingly competitive environment for consumer services and combination of OTT services, continue to impact revenue from services such as mobile and pay TV,” StarHub CEO Peter Kaliaropoulos said.

“Winning our fair share of the market for connectivity services, improving and delivering consistent customer experience across all customer segments, leveraging our data analytics capabilities, and delivering innovative solutions predominantly in managed services such as cyber security and robotics are important to our growth.”

Based on the current outlook, StarHub has maintained its forecast of a 1% to 3% decline in revenue for the full year.

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