Slide 1: StarHub 4Q & FY-2017 Results
S t a r H u b 4 Q & F Y- 2 0 1 7 R e s u l t s 14 February 2018
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: Management Team
Management Team TAN Tong Hai CEO Dennis CHIA Howie LAU Dr CHONG Yoke Sin CFO CMO Chief, EBG 3
Slide 4: Agenda
Agenda 4Q & FY2017 Highlights Financial Highlights Business Highlights 2018 Outlook 4
Slide 5: Overview (4Q-2017 vs 4Q-2016)
Overview (4Q-2017 vs 4Q-2016) ➢ Total revenue increased 2% ➢ Revenue growth in Enterprise Fixed ➢ Service revenue increased 1% ➢ Low churn rate of 0.9% maintained for Pay TV and Broadband ➢ EBITDA margin at 16.9% ➢ NPAT decreased $40m 5
Slide 6: Key Financial Highlights
Key Financial Highlights S$M 4Q-2017 4Q-2016 Change FY-2017 FY-2016 Change Total Revenue 649 635 2% 2,401 2,397 0% Service Revenue 572 567 1% 2,197 2,209 -1% EBITDA 97 136 -29% 614 690 -11% EBITDA Margin 16.9% 23.9% -7.0%pts 27.9% 31.2% -3.3%pts Taxation (5) (8) -38% (55) (69) -20% Net Profit After
Slide 7: Revenue Contribution
Revenue Contribution Quarter Ending 31 Dec FY Ending 31 Dec 2017 2016 Incr / Incr / 2017 2016 Incr / Incr / (Decr) (Decr) (Decr) (Decr) Total Revenue S$m S$m S$m % S$m S$m S$m % Mobile services 301.0 311.8 (10.9) (3.5) 1,196.9 1,214.6 (17.8) (1.5) Pay TV services 86.9 93.9 (7.0) (7.4) 348.9 377.8 (2
Slide 8: Revenue Mix
Revenue Mix Quarter Ending 31 Dec FY Ending 31 Dec 2017 2016 2017 2016 Revenue Mix % mix % mix % mix % mix Mobile services 46.4 49.1 49.9 50.7 Pay TV services 13.4 14.8 14.5 15.8 Broadband services 8.3 8.5 8.9 9.0 Enterprise Fixed services 20.0 16.9 18.2 16.7 Sales of Equipment 11.9 10.7 8.5 7.8 Tot
Slide 9: Financial Highlights
4Q & FY2017 Highlights Financial Highlights Business Highlights 2018 Outlook 9
Slide 10: EBITDA & EBITDA Margin
EBITDA & EBITDA Margin 31.2% (S$M) [658] 27.9% [610] 23.9% 690 614 16.9% [120] [108] 161 180 176 136 97 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 EBITDA Margin as % of Service Revenue Note: Numbers may not add up due to rounding. 10 Underlying EBITDA are in parenthesis.
Slide 11: Cost Of Sales
Cost Of Sales 51% (S$M) 47% 43% 41% [1,053] [995] 1,041 975 101 117 464 410 [339] [310] 329 296 260 16 25 227 225 31 138 448 476 112 26 28 107 109 111 159 176 122 92 86 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Cost of Equipment Cost of Services Traffic Expenses Cost of Sales / Revenue Note:
Slide 12: Other Operating Expenses
Other Operating Expenses (S$M) 45% 43% 43% 43% [1,026] [1,008] 1,029 1,031 134 122 631 628 [267] [265] 295 275 257 239 241 38 39 29 30 26 170 146 154 186 142 265 280 67 67 68 75 71 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Depreciation Other G&A Marketing & Promotion Operating Expense / Reven
Slide 13: Net Profit After Tax
Net Profit After Tax (S$M) [305] [247] 341 250 [41] 73 86 77 [23] 54 14 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Note: Numbers may not add up due to rounding. Underlying NPAT are in parenthesis. 13
Slide 14: Capex (cash payments)
Capex (cash payments) 19.9% (S$M) 14.7% 15.3% 12.3% 367 296 126 115 95 52 34 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Capex / Revenue * Numbers may not add up due to rounding. 14
Slide 15: Free Cash Flow
Free Cash Flow (S$M) 221 184 120 117 4Q2016 16 4Q2017 1Q2017 2Q2017 3Q2017 FY2016 FY2017 (32) (45) * Numbers may not add up due to rounding. 15
Slide 16: Business Highlights - Mobile
4Q & FY2017 Highlights Financial Highlights Business Highlights - Mobile 2018 Outlook 16
Slide 17: Mobile (4Q-2017 vs 4Q-2016)
Mobile (4Q-2017 vs 4Q-2016) ❖ Total customer base stable ❖ Pre-paid customer base increased 18k ❖ Post-paid ARPU decreased S$2 to S$68 17
Slide 18: Mobile Customer Base
Mobile Customer Base (‘000) 2,307 2,291 2,290 2,307 2,256 920 898 905 938 41% 895 1,387 1,392 1,385 1,362 1,368 59% 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 Post-paid Pre-paid * Numbers may not add up due to rounding. 18
Slide 19: Post-paid Average Monthly Churn Rate
Post-paid Average Monthly Churn Rate (%) 1.6 1.2 0.6 0.2 1.1 1.0 1.0 1.0 1.0 0.9 0.9 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Including one-time termination of 23k inactive legacy data-only lines 19
Slide 20: Mobile Revenue
Mobile Revenue (S$M) 1,214.6 1,196.9 311.8 296.2 302.7 297.0 301.0 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 20
Slide 21: Mobile ARPU
Mobile ARPU Pre-paid (S$ per month) 15 15 15 16 15 14 14 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Post-paid (S$ per month) 70 67 70 69 68 70 68 21 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017
Slide 22: Business Highlights – Pay TV
4Q & FY2017 Highlights Financial Highlights Business Highlights – Pay TV 2018 Outlook 22
Slide 23: Pay TV (4Q-2017 vs 4Q-2016)
Pay TV (4Q-2017 vs 4Q-2016) ❖ Revenue decreased 7% ❖ ARPU decreased S$1 to S$50 ❖ Customer base decreased 40k 23
Slide 24: Pay TV Base & Churn
Pay TV Base & Churn (‘000) Customers 498 487 477 467 458 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 Average Monthly Churn Rate (%) 1.0 1.0 0.9 0.9 0.9 0.9 0.9 24 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017
Slide 25: Pay TV Revenue & ARPU
Pay TV Revenue & ARPU Revenue (S$M) 377.8 348.9 93.9 88.4 87.9 85.7 86.9 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 ARPU (S$ per month) 51 51 51 51 50 51 51 25 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017
Slide 26: Business Highlights - Broadband
4Q & FY2017 Highlights Financial Highlights Business Highlights - Broadband 2018 Outlook 26
Slide 27: Broadband (4Q-2017 vs 4Q-2016)
Broadband (4Q-2017 vs 4Q-2016) ❖ Revenue stable ❖ ARPU at S$37 ❖ Customer base decreased by 6k 27
Slide 28: Broadband Base & Churn
Broadband Base & Churn (‘000) Customers 473 470 467 466 467 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 Average Monthly Churn Rate (%) 1.1 1.0 1.0 1.0 0.9 0.9 0.9 28 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017
Slide 29: Broadband Revenue & ARPU
Broadband Revenue & ARPU Revenue (S$M) 216.8 214.0 54.2 53.7 52.8 53.2 54.2 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 ARPU (S$ per month) 37 37 36 37 37 37 37 29 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017
Slide 30: Business Highlights – Enterprise Fixed
4Q & FY2017 Highlights Financial Highlights Business Highlights – Enterprise Fixed 2018 Outlook 30
Slide 31: Enterprise Fixed (4Q-2017 vs 4Q-2016)
Enterprise Fixed (4Q-2017 vs 4Q-2016) ➢ Data & Internet revenue increased 25% ➢ Voice revenue decreased 11% 31
Slide 32: Enterprise Fixed Revenue
Enterprise Fixed Revenue (S$M) 436.9 400.0 129.6 107.2 98.7 99.2 109.4 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 32
Slide 33: Voice/Data & Internet Revenue
Voice/Data & Internet Revenue (S$M) Voice 52.8 46.2 13.2 11.2 10.7 12.6 11.7 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 Data & Internet (S$M) 390.7 347.2 94.0 96.9 117.9 87.5 88.5 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 FY2016 FY2017 33
Slide 34: 2018 Outlook
4Q & FY2017 Highlights Financial Highlights Business Highlights 2018 Outlook 34
Slide 35: FY2018 Outlook
FY2018 Outlook ➢ Revenue: Expect service revenue to be 1% to 3% lower YoY. ➢ EBITDA: EBITDA margin on service revenue to be between 24%-26% (before SFRS(I) 15 adoption), while EBITDA margin is expected to increase by another 4% to 6% (after SFRS(I) 15 adoption). ➢ CAPEX: Expect cash capex to be abou
Slide 36: Investor Relations Contact
Investor Relations Contact Investor Relations Contact For IR-related queries, please email or call: Jeannie ONG Eric LOH Chief Strategic Partnership & IR Officer AVP, IR DID: +65 6825 5168 DID: +65 6825 5171 jeannieo@starhub.com / ir@starhub.com ericloh@starhub.com / ir@starhub.com 36