StarHub’s net profit jumps by 6% to $103.7m in 3Q

Its surging broadband revenue spearheaded the growth.

The three-quarter surge of its broadband business more than overshadowed the telco’s glaring mobile and pay TV weakness, reflecting a stabilisation in its average revenue per user.

According to analysts from Maybank Kim Eng, the member of Singapore’s telco triumvirate’s service revenue rose by 1%, in line with guidance of low single digit growth. Its Fixed Network also benefited from its growing enterprise content.

However, the 6% growth does not include a $15m operating gain from the dilution of its MediaHub project from 100% to 30%.

Meanwhile, Starhub lowered guidance for service revenue from low single-digit to flat, due to the stagnation of mobile growth.

“We had expected 75% penetration before stagnation appeared,” Maybank Kim Eng said.

“But we remain optimistic on a Broadband turnaround and continued growth of Fixed Network Services as StarHub pushes forward with its own fibre network and solutions for the enterprise sector,” the report added.