StarHub's 3Q earnings down 11.5% to $76.2 mil

StarHub's 3Q earnings down 11.5% to $76.2 mil

Stanislaus Jude Chan
02/11/17, 05:41 pm

SINGAPORE (Nov 2): StarHub posted an 11.5% decline in earnings to $76.2 million for the 3Q ended September, from $86.0 million a year ago.

Profit from operations fell 9.9% to $101.5 million during the quarter, from $112.7 million a year ago, on the back of lower service revenue, lower income grants and higher operating expenses.

Revenue slipped marginally to $580.4 million in 3Q17, down by 0.8% from $585.3 million a year ago.

This was mainly attributed to lower service revenues from Mobile, Pay TV and Broadband services, as well as lower sales of equipment, partially mitigated by higher revenue from Enterprise Fixed Services.

Other income fell 58.2% to $3.0 million in 3Q17 due to lower NBN grants. All rollout grants have been fully amortised and adoption grants from residential fibre have been fully claimed last year.

As at end September, cash and cash equivalents stood at $454.3 million.

StarHub has recommended an interim dividend of 4 cents per share for 3Q17. This is 20% lower than the interim dividend of 5 cents per share in the corresponding period last year.

“This quarter, we are further seeing the fruits of our growth strategy as shown by the encouraging double-digit increase in our Enterprise Fixed revenue,” says StarHub CEO Tan Tong Hai.

“We will continue investing in the enterprise space to drive our future growth,” he adds.

Shares of StarHub closed 2 cents lower at $2.64 on Thursday.

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