StarHub, the second-largest mobile operator in Singapore, reported a massive drop in profit in the last quarter of 2018 as a result of double-digit declines in revenue across most of its business lines.
Peter Kaliaropoulos, CEO, said: “As part of our transformation plan, driven by the ongoing requirements to deliver a better customer experience, we have introduced a simplification of our mobile plans. Additionally, we have lowered our TV subscription fees and enlarged the TV packs for key content such as HBO, to deliver even more value to customers. As we face increased competitive threats, we continue to seek operational efficiencies and overhaul processes to simplify products, offers and improve customer care.”
The operator’s net profit in Q4 2018 fell 70.4 per cent year-on-year to SGD15.4 million ($11.3 million), with total revenue declining 9.8 per cent to SGD620 million.
Mobile service revenue dropped 13.7 per cent to SGD194 million due to lower international direct dialing (IDD), voice and subscription revenue; higher subsidies; and a greater mix of SIM-only plans. Equipment sales fell 17.3 per cent to SGD162 million.
Broadband revenue slipped 3.1 per cent to SGD45.7 million; pay-TV fell 19.1 per cent to SGD71.3 million; and fixed enterprise revenue rose 12 per cent to SGD146 million.
Post paid user numbers increased 2.5 per cent year-on-year to 1.4 million at end-December.
Its total subscriber base, however, fell 5 per cent year-on-year to 2.2 million at end-December, as prepaid subs declined by 150,000 to 788,000.
Post paid ARPU dropped 10.9 per cent to SGD41; prepaid was flat at SGD8.
Average monthly smartphone data usage jumped to 6.1GB from 4.6GB at end-2017.
Capex in 2018 decreased 7.8 per cent from 2017 to SGD273 million, representing 11.5 per cent of total revenue.
StarHub forecasts service revenue for 2019 to dip 2 per cent year-on-year and its EBITDA margin to be between 30 per cent and 32 per cent. Capex, excluding spectrum payments of SGD282 million, is expected to remain at 11 per cent to 12 per cent of total revenue.Subscribe to our daily newsletter Back