Starhub Ltd · SGX:CC3
Starhub — Q2 2017 Earnings Presentation
36 slides from Starhub's earnings presentation, Aug 2, 2017
Slide 1: StarHub 2Q & 1H-2017 Results
StarHub 2Q & 1H-2017 Results 2 August 2017
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 2Q & 1H2017 Highlights Financial Highlights Business Highlights 2017 Outlook 4
Slide 5: Overview (2Q-2017 vs 2Q-2016)
Overview (2Q-2017 vs 2Q-2016) ➢ Total revenue decreased 1% ➢ Revenue growth in Enterprise Fixed ➢ Service revenue decreased 2% ➢ Subscriber growth in both pre & post-paid Mobile ➢ EBITDA margin at 33.2% ➢ Low churn rate maintained across ➢ NPAT decreased 21% all businesses 5
Slide 6: Key Financial Highlights
Key Financial Highlights S$M 2Q-2017 2Q-2016 Change 1H-2017 1H-2016 Change Total Revenue 579 586 -1% 1,171 1,177 0% Service Revenue 543 554 -2% 1,080 1,096 -2% EBITDA 180 192 -6% 341 375 -9% EBITDA Margin 33.2% 34.7% -1.5%pts 31.6% 34.2% -2.6%pts Taxation (18) (22) -16% (33) (42) -22% Net Profit Aft
Slide 7: Revenue Contribution
Revenue Contribution Quarter Ending 30 June First Half Ending 30 June 2017 2016 Incr / Incr / 2017 2016 Incr / Incr / (Decr) (Decr) (Decr) (Decr) Total Revenue S$m S$m S$m % S$m S$m S$m % Mobile services 302.7 305.3 (2.6) (0.9) 598.9 603.4 (4.5) (0.8) Pay TV services 87.9 95.4 (7.5) (7.9) 176.3 190.
Slide 8: Revenue Mix
Revenue Mix Quarter Ending 30 June First Half Ending 30 June 2017 2016 2017 2016 Revenue Mix % mix % mix % mix % mix Mobile services 52.3 52.1 51.1 51.3 Pay TV services 15.2 16.3 15.1 16.2 Broadband services 9.1 9.3 9.1 9.2 Enterprise Fixed services 17.1 16.8 16.9 16.5 Total Service Revenue 93.7 94.
Slide 9: Financial Highlights
2Q & 1H2017 Highlights Financial Highlights Business Highlights 2017 Outlook 9
Slide 10: EBITDA & EBITDA Margin
EBITDA & EBITDA Margin (S$M) 34.2% 34.7% 33.2% 31.6% 375 341 192 179 180 161 136 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 EBITDA Margin as % of Service Revenue * Numbers may not add up due to rounding. 10
Slide 11: Cost Of Sales
Cost Of Sales (S$M) 42% 39% 38% 37% 487 447 57 63 296 216 25 260 193 232 31 227 217 30 112 26 30 107 105 109 100 214 192 159 122 88 97 92 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 Cost of Equipment Cost of Services Traffic Expenses Cost of Sales / Revenue * Numbers may not add up due to round
Slide 12: Other Operating Expenses
Other Operating Expenses (S$M) 43% 42% 43% 41% 507 479 67 56 275 308 251 247 289 39 239 241 35 28 30 26 153 170 150 142 146 132 135 66 66 67 67 68 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 Depreciation Other G&A Marketing & Promotion Operating Expense / Revenue * Numbers may not add up due to
Slide 13: Net Profit After Tax
Net Profit After Tax (S$M) 201 159 109 86 86 73 54 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 * Numbers may not add up due to rounding. 13
Slide 14: Capex (cash payments)
Capex (cash payments) 19.8% (S$M) 12.7% 8.3% 7.7% 150 148 126 115 90 48 34 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 Capex / Revenue * Numbers may not add up due to rounding. 14
Slide 15: Free Cash Flow
Free Cash Flow (S$M) 227 137 117 133 2 4Q2016 16 2Q2016 3Q2016 1Q2017 2Q2017 1H2016 1H2017 (45) * Numbers may not add up due to rounding. 15
Slide 16: Business Highlights - Mobile
2Q & 1H2017 Highlights Financial Highlights Business Highlights - Mobile 2017 Outlook 16
Slide 17: Mobile (2Q-2017 vs 2Q-2016)
Mobile (2Q-2017 vs 2Q-2016) ➢ Total customer base expanded 55k ➢ Post-paid ARPU decreased S$1 to S$70 17
Slide 18: Mobile Customer Base
Mobile Customer Base (‘000) 2,275 2,307 2,291 2,290 2,235 902 920 898 905 40% 872 1,364 1,373 1,387 1,392 1,385 60% 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 Post-paid Pre-paid * Numbers may not add up due to rounding. 18
Slide 19: Post-paid Average Monthly Churn Rate
Post-paid Average Monthly Churn Rate (%) 1.0 1.0 1.0 0.9 0.9 0.9 0.8 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 19
Slide 20: Mobile Revenue
Mobile Revenue (S$M) 603.4 598.9 305.3 299.4 311.8 296.2 302.7 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 20
Slide 21: Mobile ARPU
Mobile ARPU Pre-paid (S$ per month) 16 16 15 15 15 16 15 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 Post-paid (S$ per month) 71 69 70 67 70 70 69 21 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017
Slide 22: Business Highlights – Pay TV
2Q & 1H2017 Highlights Financial Highlights Business Highlights – Pay TV 2017 Outlook 22
Slide 23: Pay TV (2Q-2017 vs 2Q-2016)
Pay TV (2Q-2017 vs 2Q-2016) ❖ Revenue decreased 8% ❖ ARPU at S$51 ❖ Customer base decreased 41k 23
Slide 24: Pay TV Base & Churn
Pay TV Base & Churn (‘000) Customers 518 507 498 487 477 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 Average Monthly Churn Rate (%) 1.0 1.0 0.9 0.9 0.9 0.9 0.9 24 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017
Slide 25: Pay TV Revenue & ARPU
Pay TV Revenue & ARPU Revenue (S$M) 190.3 176.3 95.4 93.6 93.9 88.4 87.9 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 ARPU (S$ per month) 52 51 51 51 51 51 51 25 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017
Slide 26: Business Highlights - Broadband
2Q & 1H2017 Highlights Financial Highlights Business Highlights - Broadband 2017 Outlook 26
Slide 27: Broadband (2Q-2017 vs 2Q-2016)
Broadband (2Q-2017 vs 2Q-2016) ❖ Revenue decreased 3% ❖ ARPU decreased by S$1 to S$36 ❖ Customer base decreased by 6k 27
Slide 28: Broadband Base & Churn
Broadband Base & Churn (‘000) Customers 473 475 473 470 467 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 Average Monthly Churn Rate (%) 1.2 1.1 1.0 0.9 0.9 1.0 0.9 28 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017
Slide 29: Broadband Revenue & ARPU
Broadband Revenue & ARPU Revenue (S$M) 107.9 106.5 54.4 54.7 54.2 53.7 52.8 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 ARPU (S$ per month) 37 37 37 37 36 37 37 29 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017
Slide 30: Business Highlights – Enterprise Fixed
2Q & 1H2017 Highlights Financial Highlights Business Highlights – Enterprise Fixed 2017 Outlook 30
Slide 31: Enterprise Fixed (2Q-2017 vs 2Q-2016)
Enterprise Fixed (2Q-2017 vs 2Q-2016) ➢ Data & Internet revenue increased 4% ➢ Voice revenue decreased 18% 31
Slide 32: Enterprise Fixed Revenue
Enterprise Fixed Revenue (S$M) 194.4 197.9 107.2 98.6 98.4 98.7 99.2 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 32
Slide 33: Voice/Data & Internet Revenue
Voice/Data & Internet Revenue (S$M) Voice 26.8 21.9 13.1 12.8 13.2 11.2 10.7 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 Data & Internet (S$M) 167.6 176.0 85.5 85.6 94.0 87.5 88.5 33 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017
Slide 34: 2017 Outlook
2Q & 1H2017 Highlights Financial Highlights Business Highlights 2017 Outlook 34
Slide 35: FY2017 Outlook
FY2017 Outlook ➢ Revenue: Maintain service revenue to be at about 2016’s level ➢ EBITDA: Maintain EBITDA margin on service revenue to be between 26 - 28% ➢ CAPEX: Maintain cash capex to be about 13% of total revenue (excludes spectrum payments) ➢ Dividend: Declare an interim quarterly dividend of 4.
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