StarHub net profit drops 23.3% to $44.5m in Q3

Mobile service revenue fell due to lower postpaid contributions.

StarHub has posted a 23.3% drop in Q3 net profit to $44.5m as revenue fell 14.5% to $489.7m, a statement read.

Mobile service revenue fell 29.4% YoY to $134.1m mainly due to lower postpaid contributions resulting from the loss of roaming, value-added service, and excess data usage revenues, as well as decrease in prepaid average revenue per user (ARPU) and subscribers.

Pay TV business revenue declined 16% YoY to $47.1m as a result of a 7.3% decrease in subscribers relating to the cable-to-fibre migration in FY2019 and prudent cost management by commercial clients that resulted in lower commercial revenue and advertising.

On the other hand, broadband service revenue rose 5.5% YoY to $45.5m due mainly to a marked 8.2% growth in ARPU to $30. The higher ARPU achieved was attributed to a reduction in subscription discounts extended during the quarter.

Similarly, the enterprise business sustained its growth to an 11.4% YoY revenue hike to $162m. The business was lifted mainly by an 18.2% rise in cybersecurity services revenue and $17.6m in revenue contributions from regional ICT services following the completion of the Strateq acquisition in July.

Q3 EBITDA and service EBITDA decreased 16.1% and 14.2%, respectively, to $143m and $131.1m. Q3 service EBITDA margin was 33.7%, 1.4pp lower than a year before.