StarHub : CC3 0%on Tuesday (May 14) posted an 8.1 per cent rise in net profit to S$40.1 million for the first quarter ended Mar 31, from S$37.1 million a year earlier.
This comes as total revenue dipped 0.1 per cent to S$545.4 million over the same period a year ago, from S$560 million.
The company attributed the rise in net profit to a higher share of profits from joint ventures and associates, lower net finance costs, lower depreciation and amortisation and taxation charges.
However, total revenue fell as a result of lower sales of equipment, which were partially offset by higher service revenue that rose 1.9 per cent year on year.
As for its segments, only its enterprise segment registered revenue growth, rising 10.4 per cent to S$197.7 million.
The company attributed this to higher revenue across its network solutions and cybersecurity services businesses, which climbed 5.1 per cent and 37.1 per cent in Q1 year on year, respectively.
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StarHub added that it expects to launch its low-latency data centre connect solution in the third quarter of this year. It will offer “ultra-low” latency connectivity between data centres, with network slicing and bandwidth-on-demand features.
This was offset by a decline in regional ICT services revenue, which fell 19.9 per cent year on year.
Meanwhile, the company’s mobile, broadband and entertainment segments fell 4.6 per cent, 0.9 per cent, and 4.2 per cent, respectively.
StarHub said the lower postpaid average revenue per user of S$31 for the quarter, from S$32 a year ago, was mainly due to lower voice and data subscription revenues, lower IDD and excess data usages, as well as lower roaming charges.
Meanwhile, its broadband segment saw lower revenue from premiums related to tactical promotions, which was offset by higher subscription revenue.
The company noted that it has seen continued migration to higher bandwidth offerings, with its 10 Gigabit per second subscriber base growing by 4.5 times in the first quarter of this year, compared to the preceding quarter.
Furthermore, entertainment revenue declined as a result of a drop in subscriber bases, although average revenue per user rose to S$45 in Q1, from S$43 a year earlier.
Shares of StarHub rose 3.3 per cent or S$0.04 to S$1.26 on Tuesday, before the results were released.
