StarHub Q1 net profit plunges 25.7% to S$40.2m; management pulls FY2020 earnings guidance

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STARHUB is withdrawing its financial guidance for this year, the mainboard-listed telco said after just three months, in an interim business update on Wednesday. Read more at The Business Times.

Still, it stressed that it “remains fully committed to and has the resources to continue with its strategic initiatives”, such as its winning 5G joint bid in Singapore, the S$82 million purchase of a stake in Malaysian business solutions firm Strateq, and its build-up of the enterprise business.

The quarter’s results “reflect the impact of Covid-19 and the early softening of the economic environment”, chief executive Peter Kaliaropoulos said in a statement. “Our enterprise business has also experienced some project and tender delays, coupled with longer sales cycles.” Shorn of equipment sales, service revenue came in at S$404.9 million, down by 8.9 per cent on the year prior. The enterprise segment, buoyed by cyber security services, was the only division to post turnover gains. Mobile, pay-television and broadband all reported declines.

The average revenue per user on post-paid mobile fell to S$34 a month from S$39 in the year before, although the number of subscribers grew by 15,000 to nearly 1.47 million.

 

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