Singapore's StarHub has reported a 3% increase in net profit for the third quarter to S$190.9 million ($152.7 million), as device sales compensated for a dip in service revenue.
StarHub's operating revenue for the quarter increased 2% year-on-year to S$592 million, but service revenue fell 1% over the same period.
Mobile revenue increased 1% to $319.9 million, and fixed network revenue was up 3% year-on-year.
But broadband revenue slumped 17% to S$49.2 million, as a result of increased price competition. The company's residential broadband customer base nevertheless grew 4% year-on-year to 461,000.
“For the quarter, we are pleased to see continued revenue growth in our Mobile, Pay TV and Fixed Network services,” StarHub CEO Tan Tong Hai said. “In spite of the intense competition in the residential broadband environment, we grew our fiber broadband market share and lowered our churn rate.”
He said the company plans to continue investing in upgrading its LTE-Advanced network to help serve its growing 4G customer base.
For the first nine months of the year, it was a similar picture. StarHub's net profit grew 4% to S$276.2 million, but operating revenue was flat at S$1.74 billion. Broadband revenue fell 16% to S$154.1 million.
Looking ahead, StarHub is projecting flat service revenue for the full year. The operator has maintained its guidance of a group ebitda margin of around 32% of service revenue and capex amounting to around 13% of total revenue.