Singapore, 7 May 2009 – In the quarter, net profit after tax increased 3% to S$82 million on the back of S$531 million revenue. The Group’s EBITDA at S$168 million is 33% of service revenue. Profit before taxation was 1% higher at S$101 million year-on-year (YoY). Free cash flow at S$115 million was 277% higher compared to last year’s S$31 million. Capital expenditure was 14% lower at S$51million compared to the same period last year.
Financial Highlights
S$ million | Quarter ended 31 March | ||
2009 | 2008 | % Change | |
Total Revenue | 530.6 | 534.9 | (0.8) |
Service Revenue | 508.2 | 507.2 | 0.2 |
EBITDA | 167.9 | 167.7 | 0.1 |
Profit before tax | 101.4 | 100.7 | 0.7 |
Profit after tax | 82.5 | 80.1 | 3.0 |
EPS (Diluted) (Cents) | 4.80 | 4.67 | 2.9 |
FCF / Share (Diluted) (Cents) | 6.71 | 1.78 | 276.5 |
1Q-2009 Financial & Business Highlights
YoY, Fixed Network revenue registered the highest growth for the quarter at 9%. This was followed by Pay TV at 5%. Mobile and Broadband revenues both registered a decrease of 3% each. In terms of total revenue mix, Mobile continued to be the major contributor at 50%. Pay TV, Broadband, Fixed Network Services and Sales of Equipment contributed 19%, 12%, 15% and 4% respectively to the revenue mix.
“The strength of our free cash flow in 1Q2009 while expanding our customer base indicates that our focus on customers and operational efficiency is the correct approach during this softening macro-economic backdrop. While we have seen lower levels of usage in a few services as some customers cut back, the diversity of our product portfolio has helped to stabilize our revenue base,” said Mr Terry Clontz, CEO of StarHub. “Also, the strong free cash flow provides adequate comfort in maintaining our commitment to pay not less than 18 cents per share in dividends this year.”
Outlook for FY2009
Based on the current outlook, we are revising our initial guidance for 2009. We expect the Group’s 2009 service revenue to be maintained at 2008 level and blended EBITDA margin on service revenue to be around 32%. 2009 cash capital expenditure, as a percentage of operating revenue, is expected not to exceed 11%. In view of the expected profitability and cash flow in 2009, we maintain our dividend guidance to pay a minimum annual cash dividend for FY2009 at 4.5 cents per ordinary share per quarter, totalling 18.0 cents for the full year.
For more details on the Group's performance for 1Q2009 and outlook for FY2009, 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 2009.
"Some of the statements in this news release constitute ‘forward-looking statements’ that do not directly or exclusively relate to historical facts. These forward-looking statements reflect StarHub Ltd’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside StarHub Ltd’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from StarHub Ltd’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution."