After the market closed its trading session yesterday, Starhub announced its full year results for 2013 which showed that the telco’s full year’s revenue fell 3% due to lower equipment sales revenue. Despite the fall in revenue, net profit after tax increased 3% as compared to 2012.

Below are excerpts of the performance as reported by Starhub.
 
Business segments
Mobile– FY2013 revenue increased 1% yoy while the customer base grew 152k. As a result, post-paid average revenue per user (ARPU) remained stable at S$70 while pre-paid ARPU fell S$1 attributed to lower voice, SMS and IDD usages.
 
Pay TV– FY2013 revenue fell 3% yoy due to lower subscription and advertising revenue. In addition, 2012’s revenue was boosted by one-off contribution from the UEFA EURO event. ARPU for Pay TV remained stable at about S$52 when the customer base fell by 2k.
 
Broadband – FY2013 revenue decreased 4% yoy and the ARPU declined S$2. This is despite a 4k increase in customer base. The fall in ARPU was mainly due to intense competition.
 
Fixed Network– FY2013 revenue gained 3% mainly due to a higher take-up of domestic leased circuits, Internet and Next Gen NBN services. International leased circuits and solution sales was lower.
 
Starhub CEO Mr Tan Tong Hai is pleased with the results which showed healthy growth in all lines of the business. He thinks that “Hubbing remains the company’s cornerstone strategy” as consumers are looking for a seamless experience.
 
Company’s outlook for FY2014
Revenue– growth to be in the low single-digit range
 
EBITDA– margin on service revenue to be about 32%
 
CAPEX – cash capex to be about 13% of total revenue
 
Dividend– maintain a cash dividend of $0.20 per share

Source: Macquarie Research - 7 Feb 2014