In short, below shows the FY19 Outlook.
Final Dividend of 4cents will be paid in May 2019.
I believe there is a need to be patient if you want to invest in Starhub.
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Maybank KE retail Research on Starhub (15 Feb 2019)
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Maybank KE retail Research on Starhub (15 Feb 2019)
- 4Q18 net profit slumped 61.8% to $19.8m, knocking FY18 earnings to $201.5 (-26.2%) or 8.7% below consensus forecast.
- Revenue for the quarter fell 9.8% to $619.5m as improvement in enterprise fixed (+12%) was eclipsed by weakness across mobile (-13.7%), Pay TV (-19.1%), broadband (-3.1%) and sale of equipment (-17.3%).
- Mobile post-paid ARPU slid to $41 (-10.9% y/y, -6.8% q/q), while that for pay-TV stabilised to $48 (-5.9% q/q, +2.1% q/q).
- Subscriber bases for both mobile both mobile (-5%) and pay-TV (-10.7%) continued to shrink.
- Service EBITDA margin narrowed 1.8ppt to 23.1% (3Q18: 28.8%), dragged by losses from Ensign and D’Crypt, higher provision for customer loyalty programmes, provision for leasing contract relating to migration of cable network and one-time accounting adjustments for handset sales.
- Guided for -2% to flat service revenue for FY19 and EBITDA margin of 26-28% amid intensifying competition with launch of contract-free SIM-only plans.
- Kept final DPS of 4¢, taking full-year payout to 16¢ (unch) but flagged a much reduced DPS of at least 9¢ for FY19, implying 4.7% yield.
- Remove StarHub from Market Insight Yield basket as dividend yield is no longer compelling amid a competitive operating landscape.
