Singaporean operator StarHub said its net profit grew 21% year-on-year despite revenue remaining stagnant.
The company posted a profit of S$78 million ($54.4 million), yet revenue increased by just 0.2% to S$532.4 million, StarHub said.
“Our diversified revenue base has allowed us to mitigate the impact of softer demand due to the weakened economy in certain segments,” StarHub CEO Terry Clontz said.
The operator's mobile business contributed S$272 million, or 51%, of StarHub's total revenue. Post-paid services accounted for three quarters of this total, yet post-paid ARPU declined S$8 to S$69. Prepaid ARPU meanwhile grew S$3 to S$23.
StarHub's broadband revenue declined 3% to S$60 million. While its residential broadband customer base grew 9% to 389,000, ARPU declined S$6 to S$51 due to a larger range of price discounts and cheaper, lower-speed plans, the company said.
Fixed network revenue grew 7% to S$80 million, while pay TV revenue slipped by S$1 million to S$101 million. The percentage of total households using all three StarHub services hit 43%.
StarHub maintained its full-year guidance, stating that its revenue is likely to be in line with 2008, and that its capex will not exceed 11% of overall operating revenue.
“However... it is not clear whether we have yet seen the worst impact of the economic downturn on our business,” CEO Terry Clontz warned.