StarHub Q2 net profit falls 36.1% on higher costs, weaker earnings

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StarHub Q2 net profit falls 36.1% on higher costs, weaker earnings.

MAINBOARD-LISTED telco StarHub saw earnings fall again by the double-digits in the second quarter on weaker operating profits and higher finance costs, in results released on Tuesday.

But cybersecurity - a fledgling business that StarHub's management has previously told shareholders runs up high operating expenses - turned an operating loss of S$900,000 in the period, against a profit of S$4.1 million in the year-ago period.Service revenue came in lower by 5.2 per cent for the quarter to S$442.4 million, while equipment sales fell by 15.4 per cent to S$110.4 million.

MrKaliaropoulos said that, excluding cybersecurity losses and the one-off costs of S$7 million from cable migration, profit would have been 10.1 per cent lower instead. StarHub maintained its full-year guidance of between zero growth and 2 per cent decline for service revenue, which was already down by 3.1 per cent to S$886.7 million in the first six months.

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