SINGAPORE (Nov 9): RHB is maintaining its “neutral” call on StarHub as 9M core earnings were in line with its estimates. It has also given it a target price of $4 as valuations are fair and supported by a dividend yield of more than 5%.

Stripping out a gain from the deconsolidation of MediaHub, StarHub’s 3Q15 core earnings of $104 million brought 9MFY15 core earnings to $276.5 million, making up 74-76% of consensus and RHB forecasts.

Mobile revenue slipped 0.1% from 2Q15 as postpaid revenue growth was not sufficient to offset the extended erosion in prepaid revenue, which continued to suffer from weaker usage. Its net addition of prepaid subscribers has, however, grown for the second consecutive quarter.

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