StarHub’s net profit grew 62.1% year-on-year to S$69 million ($56.13 million) in Q1, with mobile segment contributing to 53% of its revenue.
The Singapore-based operator's ebitda grew S$160 million year-on-year as the carrier observed a return on investment in smartphone subsidies made last year.
The carrier experienced a 9% climb in mobile customer base and mobile revenue registered 3% growth for the quarter to S$296 million. Mobile revenue increase was due mainly to a higher post-paid subscriber base and higher post-paid ARPU. Post-paid mobile services accounted for 28% of mobile revenue, while post-paid ARPU increased S$1 to S$72.
Revenue for equipment sold was 7% (S$2 million) lower compared to the same period last year, due to lower quantity of handsets sold, although this was mitigated somewhat by higher average selling price per unit.
CEO Neil Montefiore told investors and reporters that Apple’s iPhone remained the best-selling model, while the competition between Android device manufacturers had not resulted in lower price points. “The smartphone revolution continues with over 70% of our post-paid customers using them,” said Montefiore.
Pay TV, broadband, fixed network services and sales of equipment contributed 16%, 11%, 15% and 5% respectively to revenue.
Fixed network revenue increased 5% to S$84 million year-on-year, with data and Internet services contributing 84% to the fixed network revenue mix. Voice services revenue totaled S$13 million for the quarter due to higher subscription of local services and increased interconnection revenue from international carriers.
Montefiore said roaming revenue was expected to remain stable in light of lowered voice and text roaming rates to Malaysia. “We’re hoping an increase in total roaming volume will mitigate the impact of lower rates.”
Montefiore admitted the carrier had experienced rollout hiccups for Singapore’s next-generation broadband network (NGNBN).
“Interaction with building owners has not been as good as it could have been, and we’ve been disappointed with the delay in access. The corporate market for NGNBN should be looking more attractive toward the end of this year.”