Starhub Ltd · SGX:CC3
Starhub — H1 2019 Earnings Presentation
19 slides from Starhub's earnings presentation, Aug 6, 2019
Slide 1: StarHub 2Q & 1H-2019 Results
StarHub 2Q & 1H-2019 Results 6 August 2019
Slide 2: Forward-looking Statements
Forward-looking Statements The following presentation may contain forward-looking statements by StarHub Ltd (“StarHub”) relating to financial trends for future periods. Some of the statements in this presentation which are not historical facts are statements of future expectations with respect to th
Slide 3: Presenters
Presenters Peter K. Dennis CHIA CEO CFO 3
Slide 4: 2Q & 1H2019 Highlights
2Q & 1H2019 Highlights Financial Highlights FY2019 Outlook 4
Slide 5: Overview
Overview ❖ Total revenue: $553 M, $597 M (-7.4% QoQ) $1,150 M, $1,160 M (-0.9% YoY) ❖ EBITDA: $146 M, $155 M (-5.7% QoQ) $308 M, $309 M (-0.3% YoY) ❖ Service EBITDA margins: 31.8%, 30.2% (+1.6% pts QoQ) 32.8%, 30.9% (+1.9% pts YoY) ❖ Investments: $71 M, $49 M (+45.2% QoQ) $116 M, $117 M (-0.5% YoY)
Slide 6: Key Financial Highlights
Key Financial Highlights S$M 2Q-2019 2Q-2018 Change 1H-2019 1H-2018 Change Total Revenue 553 597 -7% 1,150 1,160 -1% Service Revenue 442 467 -5% 887 915 -3% EBITDA 146 155 -6% 308 309 0% Service EBITDA# 141 141 0% 290 283 3% Service EBITDA Margin 31.8% 30.2% 1.6%pts 32.8% 30.9% 1.9%pts Taxation (8)
Slide 7: Revenue Contribution
Revenue Contribution Quarter Ending 30 June 1H Ending 30 June 2019 2018 Incr / Incr / 2019 2018 Incr / Incr / (Decr) (Decr) (Decr) (Decr) Total Revenue S$m S$m S$m % S$m S$m S$m % Mobile services 192.3 213.5 (21.2) (9.9) 384.6 416.5 (31.9) (7.7) Pay TV services 64.7 84.7 (20.0) (23.6) 135.5 165.4 (3
Slide 8: Mobile & Pay TV (2Q-2019 vs 2Q-2018)
Mobile & Pay TV (2Q-2019 vs 2Q-2018) ➢ Post-paid customer base increased 101k ➢ Post-paid ARPU decreased S$5 to S$40 ➢ Post-paid average data usage at 7.5Gb ➢ TV revenue decreased 24% ➢ ARPU decreased S$9 to S$44 ➢ Customer base decreased 64k 8
Slide 9: Broadband & Enterprise (2Q-2019 vs 2Q-2018)
Broadband & Enterprise (2Q-2019 vs 2Q-2018) ➢ Broadband revenue stable ➢ ARPU decreased S$3 to S$29 ➢ Customer base increased by 38k ➢ Data & Internet revenue decreased 6% ➢ Managed services decreased 6% ➢ Voice revenue increased 13% ➢ Cyber security revenue increased 161% 9
Slide 10: Financial Highlights
2Q & 1H2019 Highlights Financial Highlights FY2019 Outlook 10
Slide 11: EBITDA
EBITDA (S$M) 309 308 155 147 162 146 111 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 1H2018 1H2019 11
Slide 12: Service EBITDA & Service EBITDA Margin
Service EBITDA & Service EBITDA Margin (S$M) 32.8% 31.8% 30.2% 30.9% 283 290 141 150 141 132 106 2Q2018 3Q2018 4Q2018 1Q2018 2Q2019 1H2018 1H2019 Service EBITDA Margin as % of Service Revenue *Service EBITDA = EBITDA less (Sales of Equipment – Cost of Equipment) 12 * Numbers may not add up due to ro
Slide 13: Cost Of Sales
Cost Of Sales (S$M) 46.1% 44.2% 44.8% 44.0% 530 511 15 31 54 45 209 304 223 283 264 260 18 17 14 248 5 7 24 28 38 18 111 22 105 116 107 103 245 219 157 140 116 108 105 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 1H2018 1H2019 Cost of Equipment Cost of Services (COS) Traffic Expenses Cyber Security services C
Slide 14: Other Operating Expenses
Other Operating Expenses (S$M) 41.7% 44.9% 41.5% 42.6% 482 490 8 43 47 46 286 249 247 287 232 28 242 248 5 5 30 19 22 24 24 21 25 152 147 159 114 119 169 140 70 70 70 84 85 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 1H2018 1H2019 Depreciation Other G&A Marketing & Promotion Cyber Security services OPEX Oper
Slide 15: Net Profit After Tax
Net Profit After Tax (S$M) 127 89 63 58 49 39 15 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 1H2018 1H2019 * Numbers may not add up due to rounding. 15
Slide 16: Free Cash Flow
Free Cash Flow (S$M) 109 99 79 76 55 21 4Q2018 2Q2018 3Q2018 1Q2019 2Q2019 1H2018 1H2019 (43) 16
Slide 17: FY2019 Outlook
2Q & 1H2019 Highlights Financial Highlights FY2019 Outlook 17
Slide 18: FY2019 Outlook
FY2019 Outlook ❖ Revenue: Expect service revenue to be stable to a decline of 2% YoY ❖ Service EBITDA*: Expect service EBITDA margin to be between 30% - 32% (after SFRS(I) 16 adoption) ❖ CAPEX: Expect CAPEX commitment to be 11% - 12% of total revenue (excludes spectrum payment of S$282 million) ❖ Di
Slide 19: Investor Relations Contact
Investor Relations Contact Investor Relations Contact For IR-related queries, please email or call: Veronica LAI Eric LOH Chief Corporate Officer AVP, IR DID: +65 6825 5136 DID: +65 6825 5171 veronical@starhub.com / ir@starhub.com ericloh@starhub.com / ir@starhub.com 19