Singapore operator StarHub booked its first increase in service revenue in six quarters, as double-digit growth in broadband and enterprise turnover in Q2 offset continued weakness in the mobile sector.
Based on its current outlook, the operator maintained a 2021 forecast for service revenue to remain stable year-on-year. The company, however reduced its capex guidance to between 7 per cent and 9 per cent of total revenue from an earlier range of 9 per cent to 11 per cent.
Net profit in Q2 was flat at SGD37.4 million ($27.7 million), while service revenue increased 7.3 per cent year-on-year to SGD403.7 million.
CEO Nikhil Eapen (pictured) stated “market competition remains intense and business conditions are still challenged” with Covid-19 (coronavirus) restrictions.
Mobile revenue dropped 9.2 per cent to SGD130.2 million, with post-paid ARPU falling 6.7 per cent to SGD28 and prepaid flat at SGD10.
Prepaid subscribers declined 19.9 per cent to 508,000, while post-paid remained at 1.4 million.
Average data usage grew to 12.9GB a month from 10GB in Q2 2020.
Broadband sales rose 12.4 per cent to SGD48.6 million and enterprise revenue by 25.7 per cent to SGD179.4 million.
Its three-year transformation programmed begun in October 2018 is expected to achieve total cost saving of SGD273 million.
The operator stated it continues to explore M&A opportunities which will “bolster its market position and offer further diversification”.
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