STARHUB LTD - Morningstar
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
StarHub Ltd
Reg. No.: 199802208C
51 Cuppage Road
#07-00 StarHub Centre
Singapore 229469
Tel: (65) 6825 5000
Fax: (65) 6721 5000
STARHUB LTD
Announcement of Unaudited Results for the Second Quarter and Half Year
ended 30 June 2006
StarHub is pleased to announce our unaudited results for the second quarter and half year
ended 30 June 2006.STARHUB LTD
Results for the Second Quarter and Half Year ended 30 June 2006
1. GROUP PROFIT AND LOSS STATEMENT
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 % Change 2006 2005 % Change
S$m S$m +/- S$m S$m +/-
Operating revenue 444.2 382.6 16.1 871.0 757.4 15.0
Operating expenses (351.8) (316.2) -11.3 (701.8) (648.6) -8.2
Profit from operations 92.4 66.4 39.3 169.2 108.8 55.5
Interest income 1.5 0.9 66.6 3.0 1.5 103.2
Interest on borrowings (2.0) (2.8) 29.1 (4.1) (5.7) 27.5
Profit before taxation 92.0 64.5 42.6 168.1 104.6 60.7
Taxation (16.3) (11.9) -37.8 (31.0) (21.5) -43.9
Profit after taxation 75.7 52.7 43.7 137.1 83.1 65.0
Attributable to:
Shareholders of the company 75.7 52.7 43.7 137.1 83.1 65.0
Minority interests - - - - - -
75.7 52.7 43.7 137.1 83.1 65.0
EBITDA 145.2 115.3 26.0 272.7 214.6 27.1
EBITDA as a % of service revenue 34.4% 31.8% 2.6 pts 33.1% 30.1% 3.0 pts
Free Cash Flow (1) 101.1 45.7 121.1 143.5 95.0 51.0
Profit from operations is arrived after charging the following:
Allowance for doub tful and b ad deb ts
written off 2.2 8.6 74.0 5.8 9.5 38.3
Depreciation and amortisation (net of asset
grant) 52.8 48.9 -8.0 103.5 105.8 2.2
nm - Not meaningful
@ - More than -/+300%
Notes:
(1) Free Cash Flow refers to net cash flow from operating activities less purchase of fixed assets in the
cash flow statement
(2) Numbers in all tables may not exactly add due to rounding
(3) Certain comparative figures have been changed to conform to current year presentation
Page 2 of 27STARHUB LTD
2. BALANCE SHEETS
Group Company
30 Jun 06 31 Dec 05 30 Jun 06 31 Dec 05
S$m S$m S$m S$m
Non-current assets
Property, plant and equipment 934.6 957.4 275.7 278.8
Intangible assets 333.6 327.6 23.2 13.5
Investments in subsidiaries - - 1,163.2 1,063.2
Deferred tax assets 136.2 145.0 110.9 119.7
Amounts due from subsidiaries - - 1.0 103.2
1,404.3 1,430.1 1,574.0 1,578.6
Current assets
Inventories 15.3 13.1 9.6 9.1
Trade receivables 112.8 99.3 82.9 63.9
Other receivables, deposits and prepayments 89.2 106.2 30.3 39.8
Balances with related parties 15.3 17.2 504.4 545.4
Cash and bank balances 201.9 174.5 182.8 156.7
434.5 410.3 809.9 814.9
Current liabilities
Trade payables and accruals 300.0 325.2 170.5 201.3
Other payables and provision 153.8 178.7 45.7 88.7
Balances with related parties 65.7 63.5 94.6 84.4
Interest-bearing borrowings 110.5 110.5 17.0 17.0
630.0 677.8 327.8 391.4
Net current assets/(liabilities) (195.6) (267.4) 482.1 423.4
Non-current liabilities
Interest-bearing borrowings 112.5 132.5 - -
Deferred income 19.9 21.8 - -
Deferred tax liabilities 53.6 31.4 - -
Net assets 1,022.8 976.9 2,056.1 2,002.0
Share capital 885.8 854.8 885.8 854.8
Reserves 137.0 122.1 1,170.3 1,147.2
Total equity 1,022.8 976.9 2,056.1 2,002.0
Page 3 of 27STARHUB LTD
3. GROUP CASH FLOW STATEMENT
Quarter ended Half year ended
30 Jun 30 Jun
2006 2005 2006 2005
S$m S$m S$m S$m
Operating Activities
Profit before taxation 92.0 64.5 168.1 104.6
Adjustments for :-
Provision for charity fund/loyalty programme 2.5 3.4 5.1 4.4
Depreciation and amortisation (net of asset grant) 52.8 48.9 103.5 105.8
Loss on disposal/write-off of property, plant &
equipment and intangible assets 0.1 0.1 0.6 0.2
Net interest expense 0.4 1.8 1.1 4.2
Share-based expenses 1.3 1.2 2.9 2.3
Operating cashflow before working capital changes 149.2 120.0 281.3 221.4
Changes in working capital 7.7 24.4 (9.0) 28.0
Net cash inflow from operating activities 156.9 144.4 272.3 249.4
Investing Activities
Proceeds from disposal of property, plant and
equipment and intangible assets 0.3 0.1 0.6 0.1
Purchase of property, plant and equipment and
intangible assets (55.7) (98.7) (128.8) (154.3)
Interest received 1.5 0.7 3.0 1.2
Net cash outflow from investing activities (53.8) (97.9) (125.2) (153.0)
Financing Activities
Proceeds from issue of shares 9.9 5.2 12.6 7.1
Interest paid (3.6) (3.4) (5.2) (7.2)
Grants received 0.2 - 0.2 -
Proceeds from loans - 17.0 - 17.0
Repayment of loans - (20.0) (20.0) (20.0)
Dividend paid on ordinary shares (107.1) - (107.1) -
Net cash outflow from financing activities (100.7) (1.2) (119.6) (3.1)
Net change in cash and cash equivalents 2.4 45.3 27.4 93.3
Cash and cash equivalents at beginning of the period 199.6 174.6 174.5 126.7
Cash and cash equivalents at end of the period 201.9 220.0 201.9 220.0
4. GROUP UNSECURED BORROWINGS
30 Jun 06 31 Dec 05
Unsecured borrowings S$m S$m
Amount repayable in one year or less 110.5 110.5
Amount repayable after one year 112.5 132.5
Total 223.0 243.0
Page 4 of 27STARHUB LTD
5. STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Group Company
2006 2005 2006 2005
S$m S$m S$m S$m
Share capital
Balance as at 1 Jan 854.8 847.2 854.8 847.2
Issue of shares under StarHub Share Option Plans 2.1 0.9 2.1 0.9
(1)
Transfer from Share Premium to Share Capital 19.1 - 19.1 -
Balance as at 31 Mar 876.0 848.1 876.0 848.1
Issue of shares under StarHub Share Option Plans 9.9 2.4 9.9 2.4
Balance as at 30 Jun 885.8 850.5 885.8 850.5
Share premium
Balance as at 1 Jan 18.5 10.0 18.5 10.0
Issue of shares under StarHub Share Option Plans 0.6 1.0 0.6 1.0
(1)
Transfer from Share Premium to Share Capital (19.1) - (19.1) -
Balance as at 31 Mar - 10.9 - 10.9
Issue of shares under StarHub Share Option Plans - 2.8 - 2.8
Balance as at 30 Jun - 13.7 - 13.7
Goodwill written off
Balance as at 1 Jan, 31 Mar & 30 Jun (276.3) (276.3) - -
Merger reserve
Balance as at 1 Jan, 31 Mar & 30 Jun 213.5 213.5 - -
Capital reserve
Balance as at 1 Jan, 31 Mar & 30 Jun 191.9 191.9 718.8 718.8
Share-based payment reserve
Balance as at 1 Jan 8.5 3.0 8.5 3.0
Share-based expenses 1.5 1.1 1.5 1.1
Balance as at 31 Mar 10.1 4.1 10.1 4.1
Share-based expenses 1.3 1.2 1.3 1.2
Balance as at 30 Jun 11.4 5.3 11.4 5.3
Note:
(1) Following the amendments to the Companies Act (“The Companies (Amendment) Act 2005”) on 30 January 2006, the
concepts of par value and authorized share capital were abolished and any amounts outstanding to the credit of the
Company’s share premium account shall become part of the Company’s share capital. Accordingly, the share premium
has been combined into the share capital account.
Page 5 of 27STARHUB LTD
5. STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT’D)
Group Company
2006 2005 2006 2005
S$m S$m S$m S$m
Hedging reserve
Balance as at 1 Jan 1.9 - - -
Effective portion of changes in fair value of cash flow
hedge 0.8 - - -
Balance as at 31 Mar 2.6 - - -
Effective portion of changes in fair value of cash flow
hedge (0.2) - - -
Balance as at 30 Jun 2.4 - - -
Retained profits/(losses)
Balance as at 1 Jan (35.9) (130.9) 401.4 402.1
Net profit/(loss) for the period 61.4 30.4 16.2 (10.4)
Balance as at 31 Mar 25.5 (100.5) 417.6 391.7
Net profit for the period 75.7 52.7 129.5 5.0
Dividend on ordinary shares (107.1) - (107.1) -
Balance as at 30 Jun (6.0) (47.8) 440.0 396.7
Total Equity 1,022.8 950.8 2,056.1 1,985.1
Page 6 of 27STARHUB LTD
6. CHANGES IN COMPANY’S SHARE CAPITAL
Share Capital and Employees’ Share Plans
Issue of new shares
For the period between 1 April 2006 and 30 June 2006, the Company issued
11,896,349 ordinary shares upon the exercise of options by participants pursuant to the
Company’s share option plans at exercise prices ranging from S$0.48 to S$1.52 per
ordinary share.
Outstanding Shares
Employees’ Share Option Plans
As at 30 June 2006, outstanding unexercised options granted pursuant to the
Company’s share option plans totaled 33,154,173 (30 June 2005: 61,520,461). This
represents 1.5% of total issued shares in the capital of the Company.
Performance Share Plan
As at 30 June 2006, there were conditional awards in respect of 3,435,000 (30 June
2005: Nil) ordinary shares under the StarHub Performance Share Plan.
Capital Reduction
On 5 June 2006, the Company announced a proposed capital reduction exercise, which
will involve the cancellation of one share out of every seven issued shares of the
Company, in exchange for S$2.13 for each share cancelled. Based on the number of
issued shares of the Company as at 31 May 2006, an estimated 306 million shares will
be cancelled and an estimated total of S$652.0 million will be returned to the
shareholders. The exact quantum of shares to be cancelled will be based on the actual
number of shares comprising the outstanding issued share capital of the Company as at
the Book Closure Date.
Our shareholders at an Extraordinary General Meeting held on the 24 July 2006 have
approved the proposed capital reduction scheme. On 1 August, we have also obtained
Court’s approval for the capital reduction scheme. We are currently in the process of
filing and making the necessary arrangements to complete the Capital Reduction and
return of cash by mid September 2006.
7. AUDIT
The figures have not been audited or reviewed.
8. AUDITORS’ REPORT
Not applicable.
Page 7 of 27STARHUB LTD
9. ACCOUNTING POLICIES
The Group has applied the same accounting policies and method of computation as in
the most recent audited financial statements for the year ended 31 December 2005.
10. CHANGES IN ACCOUNTING POLICIES AND ESTIMATES
Not applicable.
11. GROUP EARNINGS / (LOSS) PER ORDINARY SHARE
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 2006 2005
Basic 3.53 cents 2.48 cents 6.40 cents 3.92 cents
Diluted 3.49 cents 2.46 cents 6.33 cents 3.89 cents
12. NET ASSET VALUE PER ORDINARY SHARE
Group Company
30 Jun 31 Dec 30 Jun 31 Dec
2006 2005 2006 2005
Net asset value per share 47.5 cents 45.7 cents 95.5 cents 93.7 cents
Page 8 of 27STARHUB LTD
13. REVIEW OF GROUP PERFORMANCE
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
S$m S$m S$m % S$m S$m S$m %
Operating revenue 444.2 382.6 61.7 16.1 871.0 757.4 113.6 15.0
Profit from operations 92.4 66.4 26.1 39.3 169.2 108.8 60.4 55.5
Profit before taxation 92.0 64.5 27.5 42.6 168.1 104.6 63.5 60.7
Profit after taxation 75.7 52.7 23.0 43.7 137.1 83.1 54.0 65.0
EBITDA 145.2 115.3 30.0 26.0 272.7 214.6 58.1 27.1
EBITDA as a % of service revenue 34.4% 31.8% 2.6 pts - 33.1% 30.1% 3.0 pts -
Free cash flow 101.1 45.7 55.4 121.1 143.5 95.0 48.4 51.0
Results for the period ended 30 June 2006
Operating revenue grew 16% year-on-year (YoY) to S$444.2 million for the quarter and
15% YoY to S$871.0 million in 1H06. All lines of business recorded double-digit YoY
growth in revenue. For the quarter, Cable TV registered the highest revenue growth at
29% YoY due mainly to higher subscription rates as a result of the exclusive broadcast
of the FIFA 2006 World Cup on our Pay TV channels.
EBITDA for the quarter grew 26% YoY to S$145.2 million and 27% YoY to S$272.7
million in 1H06. Compared to the same periods a year ago, EBITDA margin, as a
percentage of service revenue, expanded to 34.4% for the quarter and 33.1% for 1H06.
On the back of higher revenue and improved EBITDA margins, profit from operations for
the quarter increased 39% YoY to S$92.4 million. Profit from operations in 1H06 was
56% higher YoY at S$169.2 million when compared to S$108.8 million a year ago.
Accordingly with higher operational profits, tax expense for the quarter increased 38%
YoY to S$16.3 million. As a percentage of profit before tax, the Group’s effective tax rate
for the half-year was at approximately 18%, after taking into account deferred tax
benefits available for offset by the Group.
Profit after taxation increased 44% YoY for the quarter to S$75.7 million. The half-year
profit after taxation amounted to S$137.1 million, an increase of 65% when compared to
S$83.1 million a year ago.
Free cash flow for the quarter amounted to S$101.1 million as a result of higher
operating cash flows generated and lower capital expenditure made in the quarter. For
the half year, free cash flow generated of S$143.5 million was 51% higher when
compared to S$95.0 million recorded a year ago.
Page 9 of 27STARHUB LTD
Operating Revenue
The breakdown of the Group’s operating revenue is as follows:
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
Operating revenue S$m S$m S$m % S$m S$m S$m %
Mobile revenue 226.6 203.9 22.6 11.1 444.4 399.7 44.8 11.2
Cable TV revenue 81.9 63.4 18.5 29.2 154.9 126.7 28.3 22.3
Broadband revenue 53.7 42.3 11.4 26.9 106.2 82.5 23.7 28.7
Fixed network services revenue 59.9 52.4 7.5 14.4 118.8 104.8 13.9 13.3
Total service revenue 422.1 362.0 60.1 16.6 824.3 713.7 110.6 15.5
Sale of equipment 22.1 20.5 1.6 7.9 46.7 43.7 3.0 7.0
Total 444.2 382.6 61.7 16.1 871.0 757.4 113.6 15.0
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 2006 2005
Operating revenue mix Mix % Mix % Mix % Mix %
Mobile revenue 51.0 53.3 51.0 52.8
Cable TV revenue 18.4 16.6 17.8 16.7
Broadband revenue 12.1 11.1 12.2 10.9
Fixed network services revenue 13.5 13.7 13.6 13.8
Sale of equipment 5.0 5.4 5.4 5.8
Total 100.0 100.0 100.0 100.0
Against the same periods a year ago, the Group’s total service revenue was 17% higher
YoY at S$422.1 million for the quarter and 16% higher YoY at S$824.3 million for the
half year ended 30 June 2006.
Mobile service revenue for the quarter amounted to S$226.6 million, an increase of 11%
YoY. For the half year, Mobile service revenue also increased 11% to S$444.4 million.
For the quarter and half year, Mobile service revenue continues to account for the
largest revenue component at 51% of the overall revenue mix.
As earlier mentioned, 2Q06 saw Cable TV services registering revenue growth of 29%
YoY to S$81.9 million. This resulted in its revenue for the current half year increasing by
22% YoY to S$154.9 million, and its contribution to the overall revenue mix increasing
from 17% to 18% for the period ended 30 June 2006.
Broadband services revenue for the quarter increased 27% YoY to S$53.7 million and
for the half year, increased 29% YoY to S$106.2 million. Broadband services revenue
currently accounts for 12% of the overall revenue mix.
Page 10 of 27STARHUB LTD
Compared to 2Q05, Fixed network services revenue increased 14% YoY to S$59.9
million in 2Q06 and its half year revenue increased 13% YoY to S$118.8 million. Its
share of the overall revenue mix remained steady at 14% for the quarter and the half-
year.
Revenue from sales of equipment increased 8% YoY to S$22.1 million for the quarter
and 7% YoY to S$46.7 million in 1H06. Increases in equipment revenue were due to a
higher volume of handsets sold as new customers were acquired and existing ones re-
contracted.
Page 11 of 27STARHUB LTD
Mobile Service Revenue
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
Mobile revenue S$m S$m S$m % S$m S$m S$m %
Post-paid 173.5 165.3 8.2 5.0 345.6 325.4 20.2 6.2
Pre-paid 53.1 38.7 14.4 37.3 98.8 74.3 24.5 33.0
Total 226.6 203.9 22.6 11.1 444.4 399.7 44.8 11.2
Quarter ended Half year ended YoY
30 Jun 31 Mar 30 Jun 30 Jun % Change
Mobile Key Drivers 2006 2006 2005 2006 2005 +/-
Number of mobile customers (in
thousands)
Post-paid 775 770 722 775 722 7.4
Pre-paid 596 680 565 596 565 5.4
Total 1,371 1,450 1,287 1,371 1,287 6.5
Monthly minutes of use per active
customer
Post-paid 541 535 569 538 570 -5.6
Pre-paid 249 195 100 222 101 119.0
Average monthly SMS per user
(originating) (1) 151 139 100 145 105 38.3
Total MMS traffic (in millions) 3.7 3.7 3.6 7.4 7.7 -4.0
Total GPRS traffic (in GBytes) (2) 964.5 784.5 689.7 1,749.0 1,372.4 27.4
ARPU with IDD included (S$ per
month)
Post-paid 70 70 71 70 71 -1.5
Pre-paid 27 23 24 25 24 5.9
Blended 50 48 51 49 51 -3.3
Non-voice service as a contribution to
blended ARPU 17.6% 18.4% 16.7% 18.0% 16.6% -
Average acquisition cost per gross
connection (S$) 95 104 111 100 112 11.5
Average monthly churn rate (post-
paid) 1.1% 1.2% 0.9% 1.2% 0.9% -
Singapore mobile penetration (3) 96.9% 100.8% 93.7% 96.9% 93.7% -
Market Share 32.5% 33.1% 31.6% 32.5% 31.6% -
Note:
(1) For 2006, SMS per user include SMS usages of Post-paid subscribers who are given additional 100 free SMSs
when they sign on to our GIRO payment scheme.
(2) For 2006, GPRS traffic include traffic of new service packages, such as Blackberry Unlimited and i-mode.
(3) Source : IDA
Page 12 of 27STARHUB LTD
Mobile service revenue for the quarter grew 11% YoY to S$226.6 million. Post-paid
mobile services revenue increased YoY by S$8.2 million or 5% to S$173.5 million; while
Pre-paid mobile services revenue increased 37% YoY to S$53.1 million in 2Q06. The
increase in Pre-paid revenue resulted in its share of mobile revenue mix increasing from
19% in 2Q05 to 23% in 2Q06.
For the 1st half of the year, Post-paid revenue amounted to S$345.6 million, a 6% YoY
increase and Pre-paid revenue totaled S$98.8 million, for an increase of 33% YoY. In
terms of mobile revenue mix, Post-paid revenue accounted for 78% of the mix with Pre-
paid making up the balance of 22% for 1H06.
Overall Mobile customers increased 7% YoY to a total of 1.37 million customers as at 30
June 2006. However, for the quarter, while we continued to add customers, there was a
drop of 79K mobile customers, due to the deactivation of certain Pre-paid accounts who
had not registered their Pre-paid SIMs by the Government imposed registration expiry
date of 30 April 2006. Consequently, for the half year, the Mobile customer base
contracted by 21K customers: Post-paid customer base added net 20K customers while
Pre-paid customer base contracted by net 41K customers.
Based on the IDA statistics, as at end June 2006, our mobile market share is estimated
to be 32.5%.
Post-paid mobile services
For the quarter, our Post-paid mobile services revenue increased 5% YoY to S$173.5
million on the back of a larger customer base.
Competition intensified during the 2nd quarter. Our competitors offered discounts of up to
50% on certain of their mobile subscription plans, particularly those featuring free
incoming calls, in addition to subsidies for handsets and other promotions. This resulted
in a higher churn rate of 1.1% in the quarter, compared to the 0.9% a year ago.
For the quarter, we recorded a net addition of 5.2K Post-paid subscribers compared to a
net addition of 10.8K in 2Q05. As at 30 June 2006, we have a total of 775.3K Post-paid
subscribers, a 7% YoY increase compared to 721.8K a year ago. Based on the IDA
statistics as at end June 2006, the overall Post-paid market grew 4% YoY. Our
estimated Post-paid market share as at 30 June 2006 stood at 27.8%.
While Post-paid monthly voice minutes of use was lower YoY at 541 minutes per active
customer, ARPU remained steady at S$70 per month for the quarter.
For the quarter, non-voice services, as a percentage of Post-paid ARPU was 19.7%, up
from the 17.7% recorded in 2Q05. This was primarily due to higher GPRS traffic
generated in the network. GPRS traffic increased 38% YoY for the quarter and 29%
YoY for the half year.
Page 13 of 27STARHUB LTD
Pre-paid mobile services
Our Pre-paid mobile services revenue for the quarter was 37% higher YoY at S$53.1
million. The increase is attributable to a larger active customer base yielding a higher
YoY ARPU. For the half year, Pre-paid revenue amounted to S$98.8 million, an
increase of 33% YoY.
As mentioned earlier, the Pre-paid registration process ended on 30 April 2006,
requiring the deactivation of accounts that had not registered in the required six-month
period. As a consequence, during the quarter, we saw our Pre-paid customer base
contracted by net 83.8K customers. Nevertheless, our Pre-paid customer base as at 30
June 2006 of 595.8K customers was 5% higher than the 565.3K customer base a year
ago.
Based on IDA statistics as at end June 2006, our Pre-paid market share was estimated
to be 41.6%.
Even with the deactivation of unregistered Pre-paid accounts, the total Pre-paid traffic
throughput in the network remained strong, contributing to the higher Pre-paid revenue
this quarter. The higher Pre-paid traffic throughput in the network continues to be driven
by the payable-on-demand free incoming call feature introduced to our Pre-paid mobile
plans since September 2005. For the quarter and half year, the monthly Pre-paid
minutes of use of 249 minutes and 222 minutes per active customer was 150% and
119% higher compared to the respective corresponding periods last year. The monthly
Pre-paid ARPU in this quarter at S$27 was S$4 higher than 1Q06 and S$3 higher when
compared to the S$24 recorded in 2Q05. This increase in ARPU is driven mostly by the
one-off deactivation exercise of unregistered accounts, thereby yielding a higher mix of
truly active Pre-paid accounts as compared to previous periods.
Non-voice services revenue accounted for 11.1% of the Pre-paid ARPU in 2Q06. This
was lower than that in 2Q05 of 12.5%. The decrease (in percentage terms) was due to a
higher ARPU base, where the incremental revenue was predominantly driven by voice
services. For the quarter, however, we continue to see increased usage for the non-
voice services driven mainly from promotional activities in the quarter. Pre-paid GPRS
traffic increased 71% YoY for the quarter and for the half year, the increase was 9%
YoY.
Acquisition Cost
Acquisition costs have not really changed much YoY and QoQ. However, average
(blended) acquisition costs per gross connection, at S$95 for the quarter, was S$16
lower than in 2Q05 as a result of a higher mix of Pre-paid service connections acquired
in the current quarter. The acquisition costs of Pre-paid service connections are
substantially lower than that of Post-paid service connections.
Page 14 of 27STARHUB LTD
Cable TV Revenue
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
S$m S$m S$m % S$m S$m S$m %
Cable TV revenue 81.9 63.4 18.5 29.2 154.9 126.7 28.3 22.3
Quarter ended Half year ended YoY
30 Jun 31 Mar 30 Jun 30 Jun % Change
Cable TV Key Drivers 2006 2006 2005 2006 2005 +/-
Number of residential cable TV
customers (in thousands) 478 453 424 478 424 12.9
ARPU (S$ per month) 49 47 45 48 44 9.2
Average monthly churn rate 0.9% 1.0% 0.9% 0.9% 0.9% -
Percentage of home-passed 99.9% 99.9% 99.9% 99.9% 99.9% -
StarHub's penetration 42.8% 40.5% 38.2% 42.8% 38.2% -
Against 2Q05, Cable TV revenue increased S$18.5 million or 29% YoY to S$81.9
million for the quarter. The revenue increase this quarter was primarily driven by a
higher number of subscriptions and advertising revenue related to the World Cup event.
Cable TV revenue for the half year increased 22% YoY to S$154.9 million, driven mainly
from a larger base of customers and higher ARPU.
Marketing and promotional activities for the FIFA 2006 World Cup event took centre
stage in the marketing program this quarter. Many existing customers, along with new
customers, subscribed to our Pay-Per-View World Cup package in 2Q06.
In May, we also launched Smart TV, where customers can record their cable programs
via an integrated digital video recorder/set-top box device. This integrated device also
provides the added advantage of a synchronized electronic programming guide, making
it easy to navigate through show listings and times while scheduling recording events.
Customers can also enjoy features such as event tracking and interactive applications
like TV SMS and e-mail access via the StarHub i-mail service.
In June, we also commenced the High Definition (HD) TV trial, with about 1,000
customers participating in the trial. These trialists were also able to view the World Cup
matches in HD. The trial will end in December 2006, at which time we will then be able
to understand the customers’ requirements, the types of HD content available, and any
other factors to be taken into consideration in deciding our commercial offering.
Page 15 of 27STARHUB LTD
During the quarter, there was a net addition of 25K customers, resulting in our Cable TV
customer base increasing to 478K subscribers as at 30 June 2006. This was 13%
higher than the 424K subscribers recorded one year ago. There was also continued
migration of analog accounts choosing to subscribe to the Digital tier. As at 30 June
2006, our digital cable subscribers increased to 273K, representing 57% of our Cable
TV subscriber base, which is more than twice the level a year ago.
The monthly Cable TV ARPU in 2Q06 increased S$4.70 to S$49, when compared to
2Q05. This was mainly due to the World Cup event and various other promotions in the
quarter. Pay-per-view subscriptions for the World Cup event contributed about S$2 to
the ARPU this quarter. For the half year, ARPU in 2006 stood at an average of S$48 per
month, which was 9% higher than the S$44 ARPU in 1H05.
As at 30 June 2006, our Cable TV market penetration at 42.8% of homes in Singapore
was up 4.6 percentage points from the 38.2% penetration rate a year ago.
Page 16 of 27STARHUB LTD
Broadband Revenue
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
S$m S$m S$m % S$m S$m S$m %
Broadband revenue 53.7 42.3 11.4 26.9 106.2 82.5 23.7 28.7
Quarter ended Half year ended YoY
30 Jun 31 Mar 30 Jun 30 Jun % Change
Broadband Key Drivers 2006 2006 2005 2006 2005 +/-
Number of residential broadband
customers - subscription-based (in
thousands) 299 289 247 299 247 20.9
ARPU (S$ per month) 59 59 57 59 57 3.5
Average monthly churn rate 1.0% 1.0% 1.0% 1.0% 1.0% -
Percentage of home-passed 99.9% 99.9% 99.9% 99.9% 99.9% -
For the quarter, Broadband revenue increased 27% YoY to S$53.7 million. For the half
year, Broadband revenue at S$106.2 million was 29% YoY higher than the S$82.5
million recorded a year ago. The increase in revenue was attributable to a larger base of
customers and higher ARPU.
During the quarter, we chose not to immediately react to the competitor’s reduction in
subscription plan prices and increases in customer acquisition subsidies. Instead, we
continued to focus our marketing promotions on enhancing the value proposition of our
cable broadband service offerings. In June, we announced that effective 1 July 2006,
we would double the speed of our MaxOnline 2000 service from 2000 kbps to 4000
kbps at no additional costs for customers. Customers simply needed to power “off” and
“on” their cable modems to enjoy the speed upgrade. We also offered a Free Digital
Voice promotion for customers to enjoy unlimited free local voice on their cable
broadband service and save on their residential fixed line telephony costs. Our
acquisition and re-contract promotional offers were enhanced with free voice enabled
cable modem, free number port promotions or other free value added services bundles.
With these marketing promotions, we continue to take our targeted incremental share of
the market this quarter.
For the quarter, we added 10K subscribers to our base and maintained our monthly
average churn at 1.0%. As at 30 June 2006, we have 299K subscribers in our
residential broadband customer base, registering an increase of 21% YoY.
The monthly blended ARPU remained strong at S$59 for both the quarter and half-year.
This was S$2 higher than the S$57 ARPU in the corresponding periods last year as a
result of a higher mix of customers subscribing to the higher tier plans.
Page 17 of 27STARHUB LTD
Based on the IDA statistics (which includes prepaid and wholesale customers), our
broadband customer base accounted for 49.6% of the total residential broadband
market as at 30 June 2006.
Fixed Network Services Revenue
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
Fixed Network Services
Revenue S$m S$m S$m % S$m S$m S$m %
Data & internet 41.6 35.1 6.4 18.3 81.8 69.3 12.5 18.1
Voice services 18.3 17.3 1.1 6.3 37.0 35.6 1.4 3.8
Total 59.9 52.4 7.5 14.4 118.8 104.8 13.9 13.3
Quarter ended Half year ended YoY
30 Jun 31 Mar 30 Jun 30 Jun % Change
IDD 2006 2006 2005 2006 2005 +/-
IDD minutes (in millions) 213 201 178 414 343 20.7
(1)
Our share of IDD market 17.5% 16.6% 14.7% 17.1% 14.5% -
Note:
(1) Total market as per published statistics from IDA website as at June 2006
In 2Q06, we continue to enjoy steady increase in our Data and Internet revenue
streams. For the quarter and the first half, our Data and Internet revenue increased 18%
YoY to S$41.6 million and S$81.8 million respectively.
On the Voice side, international voice minutes delivered through our network continue to
rise as a result of promotional activities carried out in the quarter. For the quarter, IDD
traffic increased 20% YoY to 213 million minutes. A total of 414 million minutes, a 21%
YoY increase, of IDD minutes was carried in 1H06. Overall, Voice services revenue was
6% higher YoY at S$18.3 million for the quarter, and for the half year was 4% higher
YoY at S$37.0 million.
Based on the IDA statistics as at end June 2006, StarHub’s IDD traffic accounted for
17.1% of the Singapore IDD market.
Overall, total Fixed network services revenue grew 14% YoY for the quarter to S$59.9
million, and for the half year, the increase was 13% YoY at S$118.8 million. Data and
Internet services revenue made up 69% of the total Fixed network services revenue mix.
Page 18 of 27STARHUB LTD
Hubbing (Multi-Service Households)
As at YoY
30 Jun 31 Mar 30 Jun % Change
Hubbing Metrics 2006 2006 2005 +/-
Total Singapore occupied homes (in thousands,
estimated) (1) 1,079 1,079 1,059 1.9
Total households with at least one service of post-paid
mobile, cable TV and/or broadband services (in
thousands) 733 719 690 6.2
Percentage of total households which subscribe to any
two services 32.6% 32.4% 31.5% 1.1 pts
Percentage of total households which subscribe to any
three services 16.5% 15.7% 13.3% 3.2 pts
Total households which subscribe to two or more
services 49.1% 48.1% 44.8% 4.3 pts
Note:
(1) Source: AGB Nielsen Media Research for 2005 and 2004 information
As at 30 June 2006, a total of 733K households subscribed to at least one StarHub
service. The current quarter saw the highest number of net-adds, totaling 14K hubbing
households, to our base in a quarter.
During the quarter, we continued to emphasize the benefits and privileges of hubbing
through marketing and promotional offers of the hubbing services (Mobile, Cable TV and
Broadband), centered on the theme of the FIFA 2006 World Cup event. In addition,
customers now have the convenience of automatic Hub Club registration once they
subscribe to all three of our hubbing services. There were 32% more Hub Club
members (subscribing to all three services) from 2Q05, with a current membership of
121K households.
Households that subscribed to two or more of our hubbing services, increased 17% YoY
to 360K households for the period ended 30 June 2006.
Page 19 of 27STARHUB LTD
Operating expenses
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
Operating expenses S$m S$m S$m % S$m S$m S$m %
Cost of sales 137.0 121.3 (15.7) -12.9 282.7 249.9 (32.8) -13.1
Other operating expenses 214.8 194.9 (19.9) -10.2 419.1 398.7 (20.5) -5.1
Total 351.8 316.2 (35.6) -11.3 701.8 648.6 (53.3) -8.2
On the back of a S$61.7 million or 16% YoY increase in operating revenue for the
quarter, total operating expenses increased S$35.6 million or 11% YoY to S$351.8
million, driven by increases in cost of sales and other operating expenses. Cost of sales
increased 13% YoY to S$137.0 million for the quarter, and increased to S$282.7 million
for the half year. Other operating expenses were 10% higher YoY at S$214.8 million for
the quarter, and at S$419.1 million for the half year was 5% higher YoY. For the half
year ended 30 June 2006, overall total operating expenses increased 8% YoY to
S$701.8 million.
Cost of sales
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
Cost of sales S$m S$m S$m % S$m S$m S$m %
Cost of equipment sold 43.9 42.6 (1.3) -3.1 95.5 89.6 (5.9) -6.5
Cost of services 44.0 34.7 (9.3) -26.8 87.3 70.7 (16.6) -23.5
Traffic expenses 49.1 44.1 (5.1) -11.5 99.9 89.6 (10.3) -11.5
Total 137.0 121.3 (15.7) -12.9 282.7 249.9 (32.8) -13.1
All categories of cost of sales increased in the quarter and half year as a result of
increased business volume. Total cost of sales as a percentage of operating revenue
was marginally lower than the same periods last year, at 30.8% and 32.5% for the
quarter and the 1H06 respectively.
For the quarter, cost of equipment sold continued to remain high as the volume of
handsets sold to new and re-contracted customers remained at a relatively steady level.
Cost of equipment this quarter also included costs associated with the Digital Video
Recorder (“DVR”) set-top boxes sold as part of our newly launched Smart TV service,
which contributed mainly to the increase of S$1.3 million YoY. Cost of equipment for the
quarter amounted to S$43.9 million, and for the half year totaled S$95.5 million. This is
a 7% increase YoY, in line with the increased quantities sold this half as compared to
1H05.
Cost of services in 2Q06 increased 27% YoY to S$44.0 million. For the half year, cost of
services increased 24% YoY to S$87.3 million. The YoY increase in both periods is
mainly attributable to higher programming costs as a result of a higher Cable TV
subscriber base as well as the amortisation of the 2006 FIFA World Cup costs.
Page 20 of 27STARHUB LTD
Traffic expenses for the quarter were 12% higher YoY at S$49.1 million on the back of
increased voice and data traffic delivered over the various platforms in current quarter.
For the half-year, traffic expenses similarly increased 12% to S$99.9 million in 1H06.
Other operating expenses
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
Other operating expenses S$m S$m S$m % S$m S$m S$m %
Staff costs 56.3 54.9 (1.4) -2.6 107.2 106.3 (0.9) -0.9
Operating lease 32.8 29.2 (3.6) -12.5 62.1 59.1 (3.0) -5.1
Marketing and promotion 38.8 32.4 (6.4) -19.6 76.3 67.1 (9.2) -13.7
Allowance for doubtful receivables 2.1 8.6 6.5 75.7 5.7 9.5 3.8 39.8
Repair and maintenance 16.3 14.2 (2.0) -14.2 33.0 29.9 (3.2) -10.7
Other expenses 15.8 6.7 (9.1) -135.6 31.2 21.0 (10.2) -48.5
Sub total 162.0 146.0 (16.0) -11.0 315.6 292.8 (22.8) -7.8
Depreciation and amortisation 52.8 48.9 (3.9) -8.0 103.5 105.8 2.3 2.2
Total 214.8 194.9 (19.9) -10.2 419.1 398.7 (20.5) -5.1
Total other operating expenses for the quarter amounted to S$214.8 million, up 10%
YoY from S$194.9 million a year ago. However, as a percentage of operating revenue,
other operating expenses in 2Q06 at 48.4% compares favorably against the 50.9%
recorded in 2Q05.
For 1H06, total other operating expenses increased 5% YoY to S$419.1 million. As a
percentage of total operating revenue, it was trending at 48.1% compared to 52.6% a
year ago.
Staff Costs
Staff costs increased 3% YoY to S$56.3 million for the quarter compared to S$54.9
million in 2Q05. Apart from a higher level of staff costs to service an enlarged customer
base and increased business volume, this quarter also included higher temporary
manpower costs for the World Cup event and provisions made to start-up the Group’s
long-term incentive fund for certain level of staff, replacing the share option schemes. As
a percentage of operating revenue, staff costs at 12.7% in 2Q06 were lower than the
14.3% in 2Q05. For the 1H06, staff costs were maintained at less than 1% YoY increase
at S$107.2 million and represent 12.3% of operating revenue compared to 14.0% a year
ago.
Operating Lease Expenses
For the quarter, operating lease expenses were S$3.6 million, or 13% higher YoY at
S$32.8 million due to higher provisions for capacity and leased circuits costs. As a
percentage of operating revenue, operating lease expenses were maintained at 7.4% in
2Q06. For the 1H06, operating lease expenses amounted to S$62.1 million, an increase
of 5% YoY. As a percentage of operating revenue, operating lease expenses for half
year was 7.1% compared to 7.8% a year ago.
Page 21 of 27STARHUB LTD
Marketing and Promotion Expenses
Marketing and promotion expenses for the quarter increased S$6.4 million, or 20% YoY
to S$38.8 million. The increase was driven by higher customer retention activities for all
services and promotional activities for the World Cup event. For the half year, marketing
and promotion expenses increased 14% YoY to S$76.3 million. As a percentage of
operating revenue, marketing and promotion expenses in 2Q06 and 1H06 were
maintained at similar levels of 8.7% as that of the corresponding periods last year.
Provision for Doubtful Debts
For the quarter, allowance for doubtful receivables amounted to S$2.1 million as
compared to S$8.6 million allowance made in 2Q05. Year-to-date, allowance made for
doubtful debts provision amounted to S$5.7 million or 0.7% of the 1H06 service revenue
compared to the S$9.5 million or 1.3% of the 1H05 service revenue last year. The lower
provision was made possible through improved customer receivables aging as a result
of higher collections in the current period as well as write-backs, in the current quarter,
of S$3.2 million of provisions made in prior years, which were no longer required.
Repair and maintenance
Repair and maintenance expenses for the quarter at S$16.3 million were 14% higher
YoY, and for the half year, at S$33.0 million, were 11% higher YoY compared to the
same periods a year ago. The higher expenditure incurred was for the maintenance of a
larger base of network infrastructure, operational support and IT systems. As a
percentage of operating revenue, repair and maintenance expenses was maintained at
3.7% for the quarter and at 3.8% for the half year when compared to the same periods
last year.
Other expenses
Other expenses in 2Q06 increased S$9.1 million to S$15.8 million. For the half-year
ended 30 June 2006, other expenses increased S$10.2 million to S$31.2 million. In
2Q05, other expenses included the one-time reversals of miscellaneous costs over-
accrued in prior periods amounting to S$8 million. There were no such similar write-
backs in the current periods. Other expenses as a percentage of operating revenue this
quarter and half-year period were trending at around 3.6%.
Depreciation and amortisation
In 2Q06, depreciation and amortisation amounted to S$52.8 million, 8% higher YoY
when compared to 2Q05. This was due to higher capitalisation of fixed assets during the
quarter. For the half year period, depreciation and amortisation totaled S$103.5 million,
2% lower than that in 1H05 as a result of a net lower depreciable asset base as certain
assets became fully depreciated over time.
Page 22 of 27STARHUB LTD
Liquidity and Capital Resources
Quarter ended 30 Jun Half year ended 30 Jun
2006 2005 Change (+/-) 2006 2005 Change (+/-)
S$m S$m S$m % S$m S$m S$m %
Profit before tax 92.0 64.5 27.5 42.6 168.1 104.6 63.5 60.7
Non-cash items & net interest
expense adjustments 57.2 55.5 1.7 3.1 113.2 116.8 (3.6) -3.1
Net change in working capital 7.7 24.4 (16.7) -68.5 (9.0) 28.0 (37.0) -132.1
Net cash provided by operating
activities 156.9 144.4 12.5 8.6 272.3 249.4 22.9 9.2
Net cash used in investing activities (53.8) (97.9) 44.1 45.0 (125.2) (153.0) 27.8 18.2
Net cash used in financing activities (100.7) (1.2) (99.5) @ (119.6) (3.1) (116.5) @
Net change in cash and cash
equivalents 2.4 45.3 (43.0) -94.8 27.4 93.3 (65.9) -70.6
Cash and cash equivalents at
beginning of the period 199.6 174.6 24.9 14.3 174.5 126.7 47.8 37.8
Cash and cash equivalents at end of
the period 201.9 220.0 (18.0) -8.2 201.9 220.0 (18.0) -8.2
Free Cash Flow (1) 101.1 45.7 55.4 121.1 143.5 95.0 48.4 51.0
Fixed Assets Additions 43.4 36.7 6.7 18.2 89.9 130.7 (40.8) -31.2
Note:
(1) Free Cash Flow refers to net cash flow from operating activities less purchase of fixed assets in the cash flow
statement
The Group generated 9% higher net cash flow from operations, which amounted to
S$156.9 million for the quarter and S$272.3 million for the half year. This is on the back
of higher EBITDA in the current periods and after allowing for working capital changes.
Payment for capital expenditures for current periods were comparatively lower than last
year, reflecting the lower capital commitments made over time as major capital
expenditure programs were completed. Cash used in these investing activities
amounted to S$53.8 million for the quarter and S$125.2 million for the half year.
Payments in the corresponding periods in 2005 included higher amounts made for the
first phase of the 3G mobile networks. As at 30 June 2006, the Group’s outstanding
capital expenditure commitments amounted to S$76.4 million, contracted mainly for
capacity expansion and upgrading of IT systems.
Consequently, free cash flow in 2Q06 amounted to S$101.1 million, and for the half year
totaled S$143.5 million.
Page 23 of 27STARHUB LTD
The strong cash flows generated in the current periods are sufficient to fund the
payments of the 2005 final dividend and the 1st interim dividend for 2006 of 2.5 cents per
share. Dividends paid in the current period totaled S$107.1 million. There were no
similar dividend payments in the corresponding periods in 2005.
As a result, the Group’s bank balance continued to be strong at S$201.9 million at the
close of the period as at 30 June 2006.
14. ANY VARIANCE BETWEEN PROSPECT STATEMENT PREVIOUSLY DISCLOSED AND
THE ACTUAL RESULTS
For the quarter and 1H06, the Group’s operating revenue had increased 16% and 15%
YoY respectively. We have guided previously that we expect the 2006 full year
operating revenue to show a high single-digit increase YoY.
For EBITDA, we had guided that the Group would expect 2006 EBITDA to expand at
around twice the growth rate of our service revenue increase YoY. As at 30 June 2006,
EBITDA increased 26% YoY on the back of a 17% YoY increase in service revenue for
the quarter and 27% YoY increase on the back of a 16% YoY increase in service
revenue for the half year.
Cash capital expenditure in 1H06 is 14.8% of operating revenue. We have guided that
for the full year of 2006, we expect the cash capital expenditure to operating revenue
ratio to be at the mid-teens.
15. GROUP OUTLOOK
As at end of June 2006, mobile penetration in Singapore stood at 96.9%, lower than the
100.8% recorded at the end of March 2006. The decrease in penetration was expected
as the unregistered Pre-paid accounts were deactivated following the expiry of the 30
April 2006 deadline. While our Pre-paid subscriber base is now lower, we have seen
positive trends in the usage and revenue growth from this segment. The quarter also
saw increased competition, with competitors discounting certain mobile price plans,
although the general focus by all the market players in the postpaid sector is on
customer retention. In the area of 3G, take-up of 3G services has continued to grow at a
good pace and over time, the contribution to non-voice ARPU will be
evident. 3G services are one element of our mobile data strategy, which is built
around increasing the acceptance and usage of data services across our 2G and 3G
portfolio. A key element of this is i-mode, where we continue to increase and enhance
content available to our i-mode customers. We have to-date 120 active sites with our
content partners. In addition, we have also expanded our i-mode enabled range of
handsets to include Nokia branded handsets in July. Other handset brands, such as
Motorola and Ericsson, will likely be available in the market in the 2nd half of the year.
Page 24 of 27STARHUB LTD
On the Cable TV front, we recently announced collaboration with OpenTV Corp., one of
our technology partners, to fully deploy OpenTV Core 2.0 software for our Smart TV
service. The software enhances the access of the Smart TV beyond remote control to
mobile and Internet platforms. In addition, we also announced a teaming arrangement
with Nagravision S.A. to utilise its advanced Conditional Access capabilities, which will
allow StarHub to expand choices to customers, including a variety of video on-demand
services as well as possible a la carte cable TV packaging.
In July, we also announced the launch of a new package of interactive TV games,
Playin’TV, via Visiware, the world’s leading provider of interactive TV games channel
(iTV). We anticipate that Playin’TV will also be introduced on our Mobile and Online
platforms by leveraging on Visiware’s triple play technology.
We believe all these initiatives will bring about even more hubbing and convergence
opportunities across our multiple service platforms, plus increased choices for our
customers’ lifestyles.
In the Broadband market, we are on track to commercially launch Singapore’s fastest
cable broadband service, at 100Mbps, via the DOCSIS 3.0 platform in the 2nd half of the
year. Together with our partner, Motorola, we believe that the platform can be upgraded
to potentially provide access speeds of up to 1Gbps in the next two to three years, in
line with Singapore iN2015 master plan. As at end June 2006, household broadband
penetration in Singapore stood at 56.7%. Competition is also intense in the quarter, and
we expect this may continue into the 2nd half of the year.
Based on our first half-year’s performance, we are upgrading our guidance for 2006.
Barring any unforeseen circumstances and changes in economic and market conditions,
we have revised our full year operating revenue growth guidance from the high single-
digits, to growth in the low teens year-on-year. For EBITDA, we are revising our
guidance statement to state the EBITDA margin expected for the full year 2006. In
1H06, EBITDA margin on service revenue was 33.1%. We had previously guided
towards YoY EBITDA growth of twice the rate of the YoY revenue increase. However,
with the revenue growth exceeding our original guidance, it is more appropriate to guide
towards average EBITDA margin. As such, for the full year of 2006, we expect EBITDA
margin on our service revenue to trend towards 33%. We maintain our guidance of “mid-
teens” for the full year’s cash capital expenditure as a ratio of operating revenue for
2006.
Some of the statements in this release constitute "forward-looking statements" that do not
directly or exclusively relate to historical facts. These forward-looking statements reflect
our current intentions, plans, expectations, assumptions and beliefs about future events
and are subject to risks, uncertainties and other factors, many of which are outside our
control. Important factors that could cause actual results to differ materially from the
expectations expressed or implied in the forward-looking statements include known and
unknown risks. Because actual results could differ materially from our intentions, plans,
expectations, assumptions and beliefs about the future, you are urged to view all forward-
looking statements contained in this release with caution.
Page 25 of 27STARHUB LTD
16. DIVIDENDS
As announced in our full year 2005 results, barring any unforeseen circumstances, and
in view of the Group’s current cash position and distributable reserves, coupled with
profitability and free cash flow trend, the Group intends to pay a minimum recurring
annual cash dividend of 10.0 cents per share in FY2006. The Group plans to pay its
dividend quarterly.
(a) Current financial period reported on
Any dividend recommended for the current financial period reported on? Yes
Name of Dividend Interim
Dividend Type Cash; Tax exempt (1-tier) dividend
Dividend Amount S$0.025 per ordinary share
Tax Rate Exempt (1-tier)
(b) Corresponding period of the immediately preceding financial year
Any dividend declared for the corresponding period of the immediately preceding
financial year? Yes
Name of Dividend Interim
Dividend Type Cash; Tax exempt (1-tier) dividend
Dividend Amount S$0.04 per ordinary share
Tax Rate Exempt (1-tier)
(c) Date payable
The interim dividend will be paid on 1 September 2006.
(d) Book closure date
Notice is hereby given that the Register of Members and the Transfer Books of the
Company will be closed on 24 August 2006 (“Book Closure Date”) for the purpose of
determining members’ entitlement to the interim dividend.
Duly completed registrable transfers received by the Company’s Share Registrar, M&C
Services Private Limited, 138 Robinson Road, #17-00 The Corporate Office, Singapore
068906 up to the close of business at 5.00pm on 23 August 2006 (“Entitlement Date”)
will be registered to determine members’ entitlement to the interim dividend. Subject as
aforesaid, persons whose securities accounts with The Central Depository (Pte) Limited
are credited with ordinary shares in the capital of the Company at 5.00pm on the
Entitlement Date will be entitled to the interim dividend.
17. IF NO DIVIDEND HAVE BEEN DECLARED/RECOMMENDED, A STATEMENT TO THAT
EFFECT
Not applicable.
Page 26 of 27STARHUB LTD
18. SUPPLEMENTARY INFORMATION – PROVIDED SOLELY FOR MARKET
COMPARISON
The Group operates as a fully integrated organisation. The analysis below shows
EBITDA by each network platform namely – Fixed, Mobile and Cable (TV and
Broadband). The analysis assumes allocations based on the principle of emulating, as
closely as possible, the fundamentals of each business segment as if each platform had
operated as a standalone entity, after allocation of certain shared costs and eliminations
of intra-group transactions. Sourcing of internal supply from Fixed Network Services by
Mobile and Cable is on a “pass through” cost basis.
Second quarter ended 30 June 2006
Fixed Mobile Cable Elimination Total
Network Platforms S$m S$m S$m S$m S$m
Total revenue 87.3 249.5 136.6 (29.1) 444.2
Service revenue 59.9 226.6 135.6 422.1
Sale of equipment - 22.1 - 22.1
EBITDA 11.5 97.8 35.9 - 145.2
EBITDA as % of service revenue 19.2% 43.2% 26.5% 34.4%
Half Year ended 30 June 2006
Fixed Mobile Cable Elimination Total
S$m S$m S$m S$m S$m
Total revenue 171.2 492.6 263.1 (55.9) 871.0
Service revenue 118.8 444.4 261.1 824.3
Sale of equipment - 46.7 - 46.7
EBITDA 23.8 182.0 67.0 - 272.7
EBITDA as % of service revenue 20.0% 40.9% 25.6% 33.1%
Page 27 of 27STARHUB LTD
INTERESTED
TERESTED PERSON TRANSACTIONS
Aggregate value of all transactions
conducted under a shareholders'
mandate pursuant to Rule 920 of the
SGX Listing Manual (excluding
transactions less than S$100,000)
1 April to 30 June 2006
S$m
Transa ctions for the Sales of Goods & Services
Chartered Semiconductor Manufacturing Ltd & its associates 0.2
Pacific Internet Limited & its associates 0.5
PT Indosat Tbk & its associates 0.4
Singapore Telecommunciations Limited & its associates 7.9
Temasek Holdings (Private) Lim ited & its associates 0.2
9.2
Transactions for the Purchase of Goods & Services
Neptune Orient Lines Limited & its associates 0.2
PT Indosat Tbk & its associates 3. 4
Singapore Computer Systems Limited & its associates 1.0
Singapore Power Limited & its associates 6.4
Singapore Telecommunciations Limited & its associates 19.8
SNP Corporation Limited & its associates 1.3
STT Com munications Ltd and it s associates 0.5
Telechoic e International Lim ited & its associates 39.0
Temasek Holdings (Private) Lim ited & its associates 1.7
73.3
There are no interested person transactions (excluding transactions less than S$100,000 and
transactions conducted under a shareholders’ mandate pursuant to Rule 920 of the SGX-ST
Listing Manual) entered into by StarHub Ltd and its subsidiaries for the period 1 April to 30 June
2006.You can also read
