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3 Things That Investors Should Know About StarHub Ltd’s Pay TV Business Performance

StarHub Ltd (SGX: CC3) is one of the three companies in the telecommunication industry, behind Singapore Telecommunications Limited (SGX: ZY4) and ahead of M1 Ltd (SGX: B2F). StarHub has five business segments, namely, Mobile, Pay TV, Broadband, Enterprise Fixed and Equipment sales.

As the company just recently announced its financial results for the second quarter of FY2017, I would like to share three useful slides about its Pay TV business from the result presentation.

Revenue performance

Source: Starhub Second Quarter of FY2017 Result Presentation

Overall, we can see that revenue was down 7.9% year-on-year for the quarter.

Customer numbers

Source: Starhub Second Quarter of FY2017 Result Presentation

From the above, we can see that customer numbers have been falling every quarter in the last few quarters. On a year-on-year basis, the numbers were down by 41,000 or 7.9%.

Average revenue per user (ARPU)

Source: Starhub Second Quarter of FY2017 Result Presentation

What’s interesting to note from the above is that ARPU remains relatively stable despite a decline in customer numbers.

Conclusion

As a whole, we see that the Pay TV segment for the company has continued to see revenue declines, mainly due to the declining customer base.

On a slightly positive note, ARPU held up rather well whilst advertising revenue grew.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.