StarHub 2012 profit jumps 14 percent, CEO to retire
StarHub saw operating revenue for the fourth quarter increase 7 percent to S$654.1 million (USS$528 million), compared to S$612.6 million (US$494 million) the year before. But its net profit after tax dipped 5 percent to reach S$87.9 million (US$70.9 million). Net profit for 2012 overall, however, jumped 14 percent to S$359.3 million (US$290 million), the company said.
The Singapore telco also announced its current COO Tan Tong Hai will replace CEO Neil Montefiore, who is retiring later this year.
In a statement Wednesday, the telco stated EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter, which ended December 31, 2012, dropped 5 percent to S$175.9 million (US$142 million).
On a full year basis, operating revenue increased to S$2.4 billion (US$1.9 billion), while EBITDA was 7 percent higher at S$719.8 million (US$581 million), up from S$676 million (US$546 million) the year before, it added.
For its outlook in 2013, StarHub said it expects operating revenue to grow in single-digit range.
Fixed network main revenue contributor
According to the company, total service revenue for both the fourth quarter and the full year grew 1 percent and 3 percent, respectively.
Among its services, fixed network revenue saw the biggest growth in revenue. It increased 8 percent year-on-year for the quarter, and 6 percent for the full year. Specifically, data and Internet services revenue--which makes up the bulk of the fixed network revenue--increased 5 percent year-on-year for both for the quarter and full year. Voice services revenue increased 19 percent for the quarter, and 13 percent higher for the full year.
Mobile revenue dipped 1 percent for the quarter but increased 1 percent overall, compared to 2012. Broadband revenue went up 4 percent to S$62.9 million (US$50.7 million) for the quarter compared to a year ago, while full-year revenue was S$7.7 million (US$6.2 million) higher. StarHub added its residential broadband customer base increased 1 percent year-on-year, ending the fourth quarter with 444,000 customers.
Pay TV revenue dropped 1 percent year-on-year for the quarter, but jumped 5 percent in total to S$396.3 million (US$320 million). StarHub said the increase was due to UEFA Euro 2012 broadcast, HD (high-definition) set-top box rental, higher take up of add-on channels, and full year impact of the S$2 (US$1.62) subscription rate increase effective since August 2011.
New CEO in March
In a separate statement Wednesday, StarHub also announced its CEO, Neil Montefiore, will retire by this month and be succeeded by current COO Tan in March.
"It has been a privilege to lead the StarHub Group for the past three years. I just turned 60 recently and I think it is the right time for me to retire from a full-time executive role. Moreover, I am leaving StarHub in good hands. Tan and I have worked together for many years and I am confident that I will be turning the helm of StarHub over to yet another seasoned industry executive who can continue steering the Group successfully," Montefiore said in the statement.