StarHub has announced its results for the quarter ended 31 March 2016 and the company said for the quarter it achieved customer growth for both pre and post-paid mobile and also grew revenue for broadband and enterprise fixed services.
Broadband revenue registered 11% growth YoY whilst enterprise fixed revenue grew 5% YoY. In terms of total revenue mix, mobile continued to be the major contributor at 50%. Pay TV, broadband, enterprise dixed services and sales of equipment contributed 16%, 9%, 16% and 8% respectively.
- Total Mobile revenue was 2% lower at S$298 million compared to the same period a year ago. The pre-paid and post-paid customer base grew by 9,000 and 42,000 respectively YoY.
- Pay TV revenue was slightly lower at S$95 million as a result of a 17,000 drop in customer base to 528,000 households. YoY, churn rate was kept low at 0.8% and ARPU remained stable at S$51.
- Broadband revenue increased 11% to S$54 million compared to a year ago, contributed mainly by an increased mix of customers on the fibre and higher speed plans. The residential broadband customer base remained stable at 473,000 households.
- Enterprise Fixed revenue increased 5% to S$96 million YoY. Data & Internet services revenue, which contributed 86% to the Enterprise Fixed revenue mix, was at S$82 million. Voice services revenue increased 7% to S$14 million due to a higher traffic volume from international services.
- The percentage of total Hubbing households that subscribed to any two or more StarHub services remained strong at 59%. Triple-service households were at 243,000.
“StarHub’s continual focus on our customers’ needs have paid off, not only in our business results but also in the latest third-party CSISG findings which measured customer satisfaction across sectors in Singapore. We are pleased to see our steadfastness in customer service, translated into StarHub being consistently ranked higher than the industry average across all lines of business. We even clinched top honours for Pay TV and Broadband, and came in a close second in the Mobile category,” Tan Tong Hai, CEO of StarHub said.
He added that in the quarter, StarHub’s hubbing packages helped maintain low churn rates across all its lines of business.
“We are especially pleased to see continued growth in our Broadband revenue for the fifth sequential quarter. We also witnessed a steady increase in the Enterprise Fixed revenue, and are on track to grow this business to be the second largest contributor to our growth story,” added Tan.
Based on the current outlook, the group maintains the Group’s 2016 service revenue to grow in the low single-digit range and Group EBITDA margin at about 31% of service revenue. It expects CAPEX payments, excluding the S$80 million spectrum payment due in 2016, to be about 13% of total revenue.