Starhub

Re: Starhub

Postby millionairemind » Fri May 07, 2010 8:27 am

Published May 7, 2010

Higher phone subsidies pull StarHub Q1 profit down

But telco expects better earnings later, with higher ARPU of smart phones


By WINSTON CHAI

STARHUB'S first-quarter net profit was almost halved from a year ago as its cost base skyrocketed after taking a bite at the Apple iPhone and other Web-enabled handsets.

The operator yesterday reported a net profit of $42.7 million, a 48.3 per cent drop from $82.5 million last year when the global recession was in full swing.


Earnings per share for the three months ended March 31 was correspondingly slashed to 2.49 cents, from 4.82 cents a year earlier. StarHub's Q1 operating revenue rose 5 per cent to $557.2 million.

'It's been quite a challenging quarter,' said StarHub CEO Neil Montefiore in a conference call yesterday.

Despite the bottom-line decline, the operator is keeping to its promise of paying shareholders at least 20 cents this year. It has proposed an interim dividend of five cents per share, up from 4.5 cents a year earlier.

StarHub's Q1 profitability was dented by an increase in its operating costs due to higher subsidies for smart phones such as the iPhone.

The firm's cost of sales climbed 26 per cent to $249.2 million in the first quarter.

This was because its cost of equipment nearly doubled to $93.8 million as a result of heavy handset subsidies, particularly for the iPhone. StarHub's operating expenses also grew 11 per cent to $250.3 million due to staff bonus payments and other items such as an increase in its operating lease.

The January-March timeframe marked the first full quarter since StarHub introduced the iPhone last December alongside rival M1.

Singapore Telecommunications got its hands on Apple's handset a year earlier. M1 and SingTel's profitability took a similar hit shortly after their iPhone debut.

Instead of subsiding after the first month, the iPhone fever continued to rage on in the first quarter, Mr Montefiore said.

'Three quarters of the phones we sold were smart phones. Subsidies are higher for smart phones,' he added.

StarHub's policy of writing down the full cost of these handsets at the point of sale means its bottom line will take an immediate hit.

Although the smartphone craze is bad on the balance sheet initially, the operator is confident the growing adoption of these Web-enabled handsets will pay off in the longer term.

'Smart phones deliver higher ARPU (average revenue per user) of around $10 more,' he said.

Revenue increased across half its business lines. Sales at StarHub's mobile division, which accounts for 51.4 per cent of its revenue, climbed 8.1 per cent to $286.3 million. Fixed network business revenue edged up 1.1 per cent to $79.9 million.

Broadband sales slid 4.6 per cent to $59.5 million, while its cable television sales fell a marginal 0.4 per cent to $101.6 million.

During the quarter, the Media Development Authority (MDA) introduced a controversial policy which has a major impact on local pay-TV providers StarHub and SingTel.

The new cross-carriage mandate forces operators to share any exclusive content they sign from March 12. To stoke the flame even further, the regulator is also looking into a possible leakage of this policy change before it came into effect.

Mr Montefiore said the company has submitted its feedback to the government on the new ruling under an MDA industry consultation exercise which ended yesterday.

StarHub shares closed one cent down yesterday at $2.27.
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Re: Starhub

Postby kennynah » Fri May 07, 2010 12:41 pm

side trace a bit...

did you ever think how M1 could have allowed montefiore to join starhub? especially when they are supposedly competitors?

and then....wah lah... you realize... we really only have 1 telco here... :mrgreen:
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Re: Starhub

Postby millionairemind » Thu Aug 05, 2010 7:41 pm

Aug 5, 2010
StarHub net profits fall

By Chua Hian Hou
STARHUB on Thursday reported 25 per cent lower net profits of $58 million for its second quarter ended June 30.

While pre-tax profit margins, at 25.9 per cent, had fallen from last year's 31.5 per cent, it was slightly higher than its unprecedented low of 22.5 per cent the preceding quarter.

Despite the lower profits, the company will continue to pay out a 5 cent per share dividend, it said.

Its shares closed two cents down at $2.33.
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Re: Starhub

Postby kennynah » Thu Aug 05, 2010 8:46 pm

It's common currency that there has been a huge exodus of employees since 2008
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Re: Starhub

Postby kennynah » Thu Aug 05, 2010 8:46 pm

It's common currency that there has been a huge exodus of employees since 2008
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Re: Starhub

Postby iam802 » Wed Sep 01, 2010 6:00 pm

I must be on a string of 'Test the customer service' activities.

----
Almost my entire afternoon was spent calling Starhub to have them check on their cable connections.


Keep asking me to connect this way, that way...reboot this way, that way...all sorts of things.

And still, it does not solve the problem.

In fact, after going through with them the first 2 rounds, I have already told them that the fault can't be on my side.

Till now, I am still having connections drop.

Ask them if they are having issues in my area...and they said no.


----
Incredible. Give them half an hour more.

Can't solve it... I am going to send email to Cust Svc Head.
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Re: Starhub

Postby kennynah » Wed Sep 01, 2010 7:04 pm

Call montefeiro directly n tell him to wake up from his afternoon naps. Remind him u r customer = king :-)
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Re: Starhub

Postby millionairemind » Thu Sep 02, 2010 3:45 pm

Sep 2, 2010
StarHub unveils high-speed plan

By Chua Hian Hou
STARHUB on Thursday announced a slew of new high-speed broadband plans running on Singapore's fibre-optic next-generation broadband network.

While its plans are slightly pricier than some announced by rival Internet service providers (ISPs) two days ago, it is throwing in some goodies like free mobile broadband, music and game downloads, and a wireless home router.

Its entry-level 100Mbps plans start from $68, and will include a free two-year 2Mbps mobile broadband modem, 10 music downloads a month, as well as modem that will double up as a wireless router. Internet service providers like SuperInternet and M1's 100Mbps broadband services cost $50 and $59 respectively, although they do not come such generous perks.


SingTel does not have a 100Mbps service; its 150Mbps service costs $85, slightly costlier than than StarHub's 150Mbps service which costs $82. On its offerings, StarHub's chief operating officer Tan Tong Hai said at a media briefing on Thursday: 'We are not competing on price. We are also offering value added services not available from other providers.' He also emphasised StarHub's ability to provide service and support.

There are also signs that the promised price war in lower-end broadband packages has begun. StarHub is expected to announce revised cable broadband plans soon, either reducing prices or boosting download speeds.

The Straits Times understands that the price of its current 100Mbps service will be cut to $81, from $87 currently. Meanwhile, its popular 16Mbps and 30Mbps services will be boosted to 25Mbps and 50Mbps respectively.
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Re: Starhub

Postby iam802 » Thu Sep 02, 2010 4:16 pm

millionairemind wrote:....
We are also offering value added services not available from other providers.' He also emphasised StarHub's ability to provide service and support.

....



Errr, I am not impressed with the service and support.

Btw, for those who are iPhone users... generally it is safer to add on a data plan so that you can surf, read emails and download apps via the phone. This helps avoid unforeseen surcharges that you may incur while using the phone (eg. download and surf too much on your phone.....can go to hundreds or even thousands).

Now, with this data plan, it is also possible to have your iPhone provide Internet access through tethering. In other words, the extra costs of the 'free' mobile broadband that Starhub is packaging is probably equal to what one is paying for those data plans on the iPhone.

But, if you do not have an iPhone like me, the 'free' mobile broadband will be useful.
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Re: Starhub

Postby kennynah » Thu Sep 02, 2010 5:02 pm

It's impt to be on an unlimited data plan if one surf on the phone..

A word on iPhone "tethering" .. don't do it..it spoils the batt .. Once the iPhone batt is dead..you can throw the phone away...
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