StarHub forecasts stable revenue in 2021 - Mobile World Live

StarHub forecasts stable revenue in 2021

06 AUG 2021

Singapore operator StarHub booked its first increase in service revenue in six quarters, as double-digit growth in broadband and enterprise turnover in Q2 offset continued weakness in the mobile sector.

Based on its current outlook, the operator maintained a 2021 forecast for service revenue to remain stable year-on-year. The company, however reduced its capex guidance to between 7 per cent and 9 per cent of total revenue from an earlier range of 9 per cent to 11 per cent.

Net profit in Q2 was flat at SGD37.4 million ($27.7 million), while service revenue increased 7.3 per cent year-on-year to SGD403.7 million.

CEO Nikhil Eapen (pictured) stated “market competition remains intense and business conditions are still challenged” with Covid-19 (coronavirus) restrictions.

Mobile revenue dropped 9.2 per cent to SGD130.2 million, with post-paid ARPU falling 6.7 per cent to SGD28 and prepaid flat at SGD10.

Prepaid subscribers declined 19.9 per cent to 508,000, while post-paid remained at 1.4 million.

Average data usage grew to 12.9GB a month from 10GB in Q2 2020.

Broadband sales rose 12.4 per cent to SGD48.6 million and enterprise revenue by 25.7 per cent to SGD179.4 million.

Its three-year transformation programmed begun in October 2018 is expected to achieve total cost saving of SGD273 million.

The operator stated it continues to explore M&A opportunities which will “bolster its market position and offer further diversification”.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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