StarHub Reports 2007 Fourth Quarter And Full-Year Results

• Full-Year Operating Revenue Expanded 12% To S$2 Billion
• EBITDA Up 12% To S$643 Million
• EPS Increased 6% To 18.5 Cents Per Share
• Recommends Final Dividend Of 4.5 Cents Per Share

Singapore, 13 February 2008 – StarHub's 2007 full-year operating revenue expanded 12% to cross the S$2 billion mark. For 4Q-2007, revenue also saw double-digit growth of 14% to S$539 million.

The Group's EBITDA for the quarter grew 8% to S$157 million from S$146 million a year ago. On a full-year basis, EBITDA was up 12% to S$643 million from S$575 million previously, while EBITDA margin as a percentage of service revenue edged slightly to 33.7% from 33.6%.

For the quarter, profit from operations was S$99 million, 11% higher year-on-year (YoY) and for the full year, was 15% higher at S$417 million. Net profit in 2007 of S$330 million was boosted by a tax credit of S$20 million while in 2006 the Group's net profit of S$360 million was inflated by a one-off tax credit of S$77 million. Excluding these exceptional tax credits, the Group's 2007 net profit from operations at S$310 million would have increased 10% from S$283 million in 2006.

Free cash flow grew 45% to S$483 million when compared to last year's S$334 million. Capital expenditure was lower by 14% at S$213 million, from S$248 million in the same period last year.

FY2007 Financial & Business Highlights
Comparing the YoY growth of each business unit, Mobile revenue was the top growth performer at 13%, driven by a larger customer base and higher post-paid ARPU in both the quarter and the year. Broadband revenue grew 12%, while the Cable TV business contributed 9% and Fixed Network services 8%. Looking at the overall revenue mix, Mobile, Cable TV, Broadband, Fixed Network Services and Sales of Equipment contributed 52%, 17%, 12%, 14% and 5% respectively.

• Mobile revenue grew 13% to S$1 billion from S$919 million, driven by a 14% jump in the customer base to 1.76 million. Post-paid mobile services revenue increased 10% YoY to S$776 million, accounting for 75% of the Mobile revenue mix. Pre-paid mobile services revenue rose 22% to S$261 million. Post-paid ARPU gained 7% to S$76, while pre-paid ARPU dropped S$1 to S$26.
• Cable TV revenue grew 9% to S$342 million from S$313 million on the wings of a 6% growth in ARPU to S$51 from S$48. Customer base increased 4% to 504,000 as at end December 2007, amounting to a household penetration of 45%. The number of customers on the digital platform expanded 27% to 408,000 households. Digital customers now constitute 81% of the total cable TV customer base.
• Broadband revenue grew 12% to S$247 million compared to S$220 million a year ago. The MaxOnline customer base was up 6%, closing the quarter with 346,000 customers. As more customers upgraded their plans to the higher speed plans, ARPU increased S$1 to S$60.
• Fixed Network revenue increased 8% to S$280 million from S$260 million. This was on the back of the higher margin Data & Internet services. Data & Internet services revenue, which contributed 74% to the Fixed Network revenue mix, jumped 16% to S$206 million from S$177 million previously.
• The percentage of total Hubbing households that subscribed to any two or more StarHub services now stands at 52%, with 38% subscribing to all three services.

"2007 has been another great year for StarHub as we continued to achieve growth across all business lines. Despite the highly penetrated and competitive markets, we scored double-digit growth for both Mobile and Broadband. We also crossed a number of milestones including surpassing S$2 billion in total revenue, S$1 billion in mobile service revenue and the half-million cable TV customers' mark," said Mr Terry Clontz, CEO of StarHub.

"We are proposing to increase our final quarter dividend to 4.5 cents per share which brings our total annual dividend to 16.0 cents per share for FY2007," added Mr Clontz.

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 FY2007 and outlook for FY2008, please visit www.starhub.com/ir. Materials available at this website include the webcast, investor presentation and audited results for the full-year ended 31 December 2007.

About StarHub:
StarHub, Singapore's second largest info-communication company, offers a full and diverse range of information, communications and entertainment services over its advanced fixed, cable, mobile and Internet platforms. Targeting both consumer and corporate markets, StarHub operates a full two-way 3.5G mobile network in addition to its GSM network, a nation-wide HFC network that delivers multi-channel cable TV services (including Digital Cable and High Definition Television) as well as ultra-high speed residential broadband services, and an extensive fixed business network that provides a wide range of data, voice and wholesale services.

Launched in 2000, StarHub has become one of Singapore's most innovative info-communications providers, and the pioneer in 'hubbing' - the ability to deliver unique integrated and converged services to all its customers. StarHub is listed on the SGX-ST. Visit www.starhub.com for more information.