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Revenues Slip At StarHub

210px-Starhub.svgStarHub (SGX: CC3) reported a 0.7% fall in second-quarter revenues to $586.8 million.

This was due to due to “lower quantity of equipment sold, which decreased S$5.5 million or 18.0% year-on-year (YoY). This was mitigated by higher service revenue of S$1.6 million or 0.3% increase YoY.

For the quarter, mobile services revenue increased 3%; pay TV revenue decreased 8%; broadband revenue decreased 1%, while fixed network services revenue increased 2%.

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Profit from operations at $124.9 million was $14.4 million or 13.0% higher than last year. The increase was mainly due to higher other income arising from adoption grant for Next Gen NBN connections and lower operating expenses in the current periods.

The net profit improved 16% to $101m. The diluted earnings per share (EPS) for the first half was 11.10 cent, up 9.3%. If the EPS is annualised, it translates to a PE ratio of 19.2. The trailing PE ratio is 20.5.

The free cash flow for the second quarter was $64.3 million, a drop of 55.1% compared to last year.

StarHub declared an interim dividend of 5.0 cents per share. It intends to maintain the annual cash dividend payout of 20 cents per ordinary share for 2013. This translates to a dividend yield of 4.68%.

Mr Tan Tong Hai, Chief Executive Officer of StarHub, said: “We are pleased to see a 10% increase in our net profit after tax on a half-year basis driven by the Mobile and Enterprise businesses, despite the competitive market environment. While we are happy with the growth of our 4G SmartSurf tiered data plans, we have also introduced the industry’s first unlimited voice/SMS HD SmartSurf plans with smaller data bundles, to address the needs of high-voice usage customers. This will help to augment our mobile offerings and differentiate us from the competition.

StarHub also bagged two major awards in the 2013 Asia Communication Awards – Operator of the Year & Best Brand for “Home Is Where The Heart Is” Campaign.

The shares closed at $4.27 on 6 August 2013.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.