StarHub revenues hit S$308m

In a statement today, the company--which launched its services on April 1, 2000--said its first-year revenues exceeded its original target of S$250 million, which was projected in the third quarter of its financial year.

For its mobile unit, StarHub had 329,000 pre-and post-paid customers as of March 31, 2001.This figure represents a 12 percent share of the total mobile market here. StarHub vice president (mobile) Chan Kin Hung said at the sidelines of a press briefing today that its average revenue per user for its mobile and international direct dialing (IDD) services was S$61 per month.

It noted that it had 700,000 registered lines for its IDD services and 1,400 payphones island-wide.

In its business segment, the company said it had more than 300 customers and that more than 500 commercial buildings had been directly connected to its broadband fixed network.

StarHub Internet had 280,000 dialup customers and 770 corporate customers. These figures represent a 17 percent market share as of March 2001, the company added.

Its international and wholesale business grew to 30 wholesale customers with revenues constituting 16 percent of StarHub's total revenues.

SCV merger, IPO plans
StarHub president and CEO Terry Clontz told reporters at the press briefing today that its merger with Singapore Cable Vision is expected to close in September this year.

About two weeks ago, StarHub and Singapore Cable Vision Ltd (SCV) said they had agreed to merge. The two companies said their respective shareholders have signed an agreement on the principal terms for the merger.

StarHub said in the statement that the merged entity would offer services such as fixed-line, wireless, long distance, Internet services, cable TV and broadband Internet access. "We will be very competitive," Clontz said. "The details of the types of services will be announced jointly in the next four to eight weeks," he added.

Clontz said one of the hurdles both companies had yet to clear was Singapore Press Holdings (SPH) shareholders' approval of the merger.

SCV's current shareholders are Media Corporation of Singapore, ST Telecommunications and Singapore Press Holdings, while NTT Communications Corporation, ST Telemedia and British Telecommunications have stakes in StarHub.

Clontz explained that SCV and StarHub had to also deal with issues including network integration and branding to bring the companies together. He expects both companies to be fully integrated by year end. To a question, he said he did not anticipate "any reduction in staff" from the "non-threatening" merger.

He declined to disclose the stakes of shareholders in the yet-to-be-named StarHub-SCV merged entity. However, he said the new entity would comprise Media Corporation of Singapore, ST Telemedia, Singapore Press Holdings, British Telecommunications and NTT Communications Corporation. He expects details of the shareholders stake to be available in about six weeks' time.

When asked if British Telecommunications has expressed any indication to StarHub to sell its 18 percent stake in the latter, Clontz would only say: "BT will be a shareholder in the merged entity…But what they decide in the future is up to them."

In March, it was reported that BT was aggressively looking for a buyer for its stake in StarHub.

Last month, British Telecommunications Plc agreed, in principle, to sell its 33.3 percent holding in Maxis Communications Bhd to Usaha Tegas Sdn Bhd for 350 million pounds (US$502 million) in cash.

Without revealing specifics, Clontz said StarHub also plans to go for an initial public offering in the next 12 to 24 months, but the listing was "subject to market conditions".

Meanwhile, the company said it was targeting revenues of S$450 million (excluding revenues from StarHub-SCV merger) in its second financial year, which will end in December 2001. StarHub said its current fiscal period, which will end in December this year, is in line with its shareholders' financial year-end.

Without revealing specifics, Clontz said growth would be fueled by its mobile and IDD and data network segments. He expects StarHub to get about 500,000 mobile subscribers by the end of this year.