Towards Financial Freedom
STH - Ringing Up a Strong 1H2013
STH's 1HFY13 results were in line, with the following key takeaways: i) the higher take-up of tiered data plans raised q-o-q postpaid ARPU, and (ii) the EBITDA margin improved from a lower volume of handsets sold. We are still NEUTRAL (FV: SGD4.18) given the stock's rich valuation, although it is well-supported by a 5% sustainable dividend yield. We prefer M1 (NEUTRAL, FV: SGD3.25) for exposure to the sector.
- Strong 1H, but expect weaker 2H. Although StarHub (STH)'s 1HFY13 core earnings made up a strong 56% and 53% of our and consensus estimates respectively, we consider the numbers to be in line as we expect a weaker 2H from higher handset subsidies and increased competition. Overall service revenue (excluding handset sales) were flat y-o-y in 1HFY13 (+3% q-o-q), reflecting continued pressure on pay-TV revenue (-5% y-o-y). An expected five-cent DPS was declared.
- Higher postpaid ARPU from tiered plans. 362k STH subscribers had moved to its tiered long term evolution (LTE) data plans as at 2QFY13, a 33% rise q-o-q. This fuelled the 6% q-o-q rise in postpaid average revenue per user (ARPU) and a 5% sequential increase in postpaid revenue. We expect the take-up of tiered plans to keep growing on the back of the expanded LTE footprint and STH to consider raising price points by 4Q13, allowing for better data monetisation.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
RHB Investment Research Reports
ST Engineering - Rolling Forward Our Valuation; Reiterate BUY
2
SGX Market Dialogues
Kopi-C With GuocoLand’s Group CEO: ‘We Have Twin Engines for Growth’
3
CEO Morning Brief
Singapore Home Sales Set for Worst Year Since Financial Crisis
4
CEO Morning Brief
DBS Posts 300% Growth in Semi-liquid Fund Sales in Greater China
5
CEO Morning Brief
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
