Slide 1: StarHub 1Q-2017 Results
StarHub 1Q-2017 Results 3 May 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 1Q2017 Highlights Financial Highlights Business Highlights 2017 Outlook 4
Slide 5: Overview (1Q-2017 vs 1Q-2016)
Overview (1Q-2017 vs 1Q-2016) Total revenue stable Revenue growth in Broadband & Enterprise Fixed Service revenue decreased 1% Subscriber growth in both pre & post-paid Mobile EBITDA decreased 12% Low churn rate of 0.9% maintained EBITDA margin at 29.9% across all businesses NPAT dec
Slide 6: Key Financial Highlights
Key Financial Highlights S$M 1Q-2017 1Q-2016 Change Total Revenue 592 591 0% Service Revenue 537 542 -1% EBITDA 161 183 -12% EBITDA Margin 29.9% 33.8% -3.9%pts Taxation (14) (20) -28% Net Profit After Tax 73 93 -21% Capex Cash Payments 34 42 -19% % of Capex to Revenue 5.7 7.1 -1.4%pts FCF / Fully Di
Slide 7: Revenue Contribution
Revenue Contribution First Quarter Ending 31 March 2017 2016 Incr / (Decr) Incr / (Decr) S$m S$m S$m % Total Revenue Mobile services 296.2 298.1 (1.9) (0.6) Pay TV services 88.4 94.9 (6.5) (6.8) Broadband services 53.7 53.5 0.2 0.5 Enterprise Fixed services 98.7 95.8 2.9 2.9 Total Service Revenue 53
Slide 8: Revenue Mix
Revenue Mix First Quarter Ending 31 March 2017 2016 % mix % mix Total Revenue Mobile services 50.0 50.4 Pay TV services 14.9 16.1 Broadband services 9.1 9.1 Enterprise Fixed services 16.7 16.2 Total Service Revenue 90.7 91.8 Sales of Equipment 9.3 8.2 Total Revenue 100.0 100.0 8 • Numbers may not ad
Slide 9: Financial Highlights
1Q2017 Highlights Financial Highlights Business Highlights 2017 Outlook 9
Slide 10: EBITDA & EBITDA Margin
EBITDA & EBITDA Margin (S$M) 33.8% 29.9% 183 192 179 161 136 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 EBITDA Margin as % of Service Revenue 10
Slide 11: Cost Of Sales
Cost Of Sales (S$M) 44% 296 39% 25 260 230 232 31 217 33 30 112 30 107 93 105 100 159 122 104 97 88 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Cost of Equipment Cost of Services Traffic Expenses Cost of Sales / Revenue * Numbers may not add up due to rounding. 11
Slide 12: Other Operating Expenses
Other Operating Expenses (S$M) 43% 275 40% 256 251 247 39 239 33 35 28 30 170 158 150 153 142 66 66 66 67 67 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Depreciation Other G&A Marketing & Promotion Operating Expense / Revenue * Numbers may not add up due to rounding. 12
Slide 13: Net Profit After Tax
Net Profit After Tax (S$M) 109 93 86 73 54 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 13
Slide 14: Capex (cash payments)
Capex (cash payments) (S$M) 7.1% 150 126 5.7% 42 48 34 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Capex / Revenue 14
Slide 15: Free Cash Flow
Free Cash Flow (S$M) 137 117 90 2 4Q2016 1Q2016 2Q2016 3Q2016 1Q2017 (45) 15
Slide 16: Business Highlights - Mobile
1Q2017 Highlights Financial Highlights Business Highlights - Mobile 2017 Outlook 16
Slide 17: Mobile (1Q-2017 vs 1Q-2016)
Mobile (1Q-2017 vs 1Q-2016) Total customer base expanded 93k Post-paid ARPU decreased S$2 to S$67 17
Slide 18: Mobile Customer Base
Mobile Customer Base (‘000) 2,275 2,307 2,291 2,198 2,235 902 920 898 39% 855 872 1373 1387 1392 61% 1344 1364 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Post-paid Pre-paid * Numbers may not add up due to rounding. 18
Slide 19: Post-paid Average Monthly Churn Rate
Post-paid Average Monthly Churn Rate (%) 1.0 0.9 0.9 0.9 0.8 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 19
Slide 20: Mobile Revenue
Mobile Revenue (S$M) 305.3 311.8 298.1 299.4 296.2 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 20
Slide 21: Mobile ARPU
Mobile ARPU (S$ per month) Pre-paid 17 16 16 15 15 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 (S$ per month) Post-paid 69 71 69 70 67 21 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Slide 22: Business Highlights – Pay TV
1Q2017 Highlights Financial Highlights Business Highlights – Pay TV 2017 Outlook 22
Slide 23: Pay TV (1Q-2017 vs 1Q-2016)
Pay TV (1Q-2017 vs 1Q-2016) Revenue decreased 7% ARPU at S$51 Customer base decreased 41k 23
Slide 24: Pay TV Base & Churn
Pay TV Base & Churn (‘000) Customers 528 518 507 498 487 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Average Monthly Churn Rate (%) 1.0 1.0 0.9 0.9 0.8 24 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Slide 25: Pay TV Revenue & ARPU
Pay TV Revenue & ARPU (S$M) Revenue 94.9 95.4 93.6 93.9 88.4 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 ARPU (S$ per month) 51 52 51 51 51 25 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Slide 26: Business Highlights - Broadband
1Q2017 Highlights Financial Highlights Business Highlights - Broadband 2017 Outlook 26
Slide 27: Broadband (1Q-2017 vs 1Q-2016)
Broadband (1Q-2017 vs 1Q-2016) Revenue stable ARPU increased by S$1 to S$37 Customer base decreased by 3k 27
Slide 28: Broadband Base & Churn
Broadband Base & Churn (‘000) Customers 473 473 475 473 470 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Average Monthly Churn Rate (%) 1.1 1.2 1.0 0.9 0.9 28 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Slide 29: Broadband Revenue & ARPU
Broadband Revenue & ARPU (S$M) Revenue 53.5 54.4 54.7 54.2 53.7 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 ARPU (S$ per month) 36 37 37 37 37 29 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Slide 30: Business Highlights – Enterprise Fixed
1Q2017 Highlights Financial Highlights Business Highlights – Enterprise Fixed 2017 Outlook 30
Slide 31: Enterprise Fixed (1Q-2017 vs 1Q-2016)
Enterprise Fixed (1Q-2017 vs 1Q-2016) Data & Internet revenue increased 7% Voice revenue decreased 19% 31
Slide 32: Enterprise Fixed Revenue
Enterprise Fixed Revenue (S$M) 107.2 98.6 98.4 98.7 95.8 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 32
Slide 33: Voice/Data & Internet Revenue
Voice/Data & Internet Revenue (S$M) Voice 13.7 13.1 12.8 13.2 11.2 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 Data & Internet (S$M) 94.0 85.5 85.6 87.5 82.1 33 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
Slide 34: 2017 Outlook
1Q2017 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