07 May 2008

EBITDA Grew 6% To S$168 Million

EPS Expanded 25% To 4.67 Cents Per Share

Recommends Interim Dividend Of 4.5 Cents Per Share

Singapore, 7 May 2008 – For the first quarter of 2008, operating revenue increased 13% to S$535 million from S$473 million a year ago. The Group’s EBITDA for the quarter grew 6% to S$168 million. EBITDA margin as a percentage of service revenue was 33.1%.

For the quarter, profit from operations was 5% higher year-on-year (YoY) at S$108 million. Net profit after tax increased 15% to S$80 million. Free cash flow at S$31million was 78% lower compared to last year’s S$141 million due to higher capex payments, higher prepayments, reduced trade payables and accruals in the quarter.

Capital expenditure was S$35million higher at S$59 million compared to S$24 million in the same period last year. The increase included S$28 million of capex payments for projects carried over from December 2007 and paid in the beginning of this quarter as mentioned in our previous results announcement.

Financial Highlights


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31 March



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1Q-2008 Financial & Business Highlights

Pay TV revenue registered the highest growth for the quarter, recording a 23% YOY lift. Mobile revenue grew by 13%, while Fixed Network services grew 7%, and Broadband revenue grew 6%. In terms of total revenue mix, Mobile continues to be the major contributor at 51%. Pay TV, Broadband, Fixed Network Services and Sales of Equipment contributed 18%, 12%, 14% and 5% respectively to the revenue mix.

Mobile revenue grew 13% to S$273 million from S$242 million, driven by a 13% increase in the customer base to 1.8 million. Post-paid mobile services revenue increased 16% YoY to S$211 million, accounting for 77% of the Mobile revenue mix. Pre-paid mobile services revenue grew 2% to S$63 million. Post-paid ARPU jumped S$8 to S$79, while pre-paid ARPU dropped S$4 to S$22.

Pay TV revenue expanded 23% to S$97 million from S$79 million due to an 18% growth in ARPU to S$57 from S$48. Customer base increased 4% to 508,000. The number of customers on the digital platform grew 28% to 438,000 households. Digital customers now constitute 86% of the total pay TV customer base.

Broadband revenue grew 6% or S$4 million to S$64 million compared to a year ago. The MaxOnline customer base grew 7%, ending the quarter with 352,000. As a result of the new customers signing up for the new low end plan, ARPU decreased S$1 to S$59.

Fixed Network revenue increased 7% to S$73 million from S$68 million previously. Data & Internet services revenue, which now contributes 82% to the Fixed Network revenue mix, jumped 22% to S$60 million from S$49 million a year ago.

The percentage of total Hubbing households that subscribed to any two or more StarHub services stands at 52%, with 39% subscribing to all three services.

"Despite the intensified competitive landscape in Singapore, StarHub has delivered double-digit growth in both revenue and net profit in the first quarter of this year," said Mr Terry Clontz, CEO of StarHub. “We believe that the strength of our Hubbing offers, in addition to the new services we plan to launch this year, will continue to position the company well.”

Outlook for FY2008

Based on the current outlook, barring any unforeseen circumstances and changes in economic and market conditions, our 2008 full year operating revenue is expected to be around 10%. We expect EBITDA margin to be about 33% of service revenue, and the full year’s cash capital expenditure as a ratio of operating revenue for 2008 to not exceed 12%. The Company intends to pay a minimum annual cash dividend of 18.0 cents per share for FY2008.

For more details on the Group's performance for 1Q2008 and outlook for FY2008, please visit www.starhub.com/ir. Materials available at this website include the audio conference link, investor presentation and unaudited results for the quarter ended 31 March 2008.

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