Forward-looking Statements

Transcription

1 StarHub 2Q & 1H-2017 Results 2 August 2017

2 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 the financial conditions, results of operations and businesses, and related plans and objectives. These forward-looking statements are based on StarHub s current views, intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside StarHub s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks and uncertainties. Because actual results could differ materially from StarHub s current views, intentions, plans, expectations, assumptions and beliefs about the future, such forward-looking statements are not and should not be construed as a representation, forecast or projection of future performance of StarHub. It should be noted that the actual performance of StarHub may vary significantly from such statements. 2

3 Management Team TAN Tong Hai CEO Dennis CHIA CFO Howie LAU CMO Dr CHONG Yoke Sin Chief, EBG 3

4 Agenda 2Q & 1H2017 Highlights Financial Highlights Business Highlights 2017 Outlook 4

5 Overview (2Q-2017 vs 2Q-2016) Total revenue decreased 1% Service revenue decreased 2% EBITDA margin at 33.2% NPAT decreased 21% Revenue growth in Enterprise Fixed Subscriber growth in both pre & post-paid Mobile Low churn rate maintained across all businesses 5

6 Key Financial Highlights S$M 2Q Q-2016 Change 1H H-2016 Change Total Revenue % 1,171 1,177 0% Service Revenue % 1,080 1,096-2% EBITDA % % 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 After Tax % % Capex Cash Payments % % % of Capex to Revenue %pts %pts FCF / Fully Diluted Shares % % Net Debt to TTM EBITDA Ratio 0.82x 0.65x 0.17x 0.82x 0.65x 0.17x Numbers may not add up due to rounding / TTM = Trailing Twelve Months 6

7 Revenue Contribution Quarter Ending 30 June First Half Ending 30 June Total Revenue 2017 S$m 2016 S$m Incr / (Decr) S$m Incr / (Decr) % 2017 S$m 2016 S$m Incr / (Decr) S$m Incr / (Decr) % Mobile services (2.6) (0.9) (4.5) (0.8) Pay TV services (7.5) (7.9) (14.0) (7.4) Broadband services (1.6) (3.0) (1.4) (1.3) Enterprise Fixed services Total Service Revenue (11.1) (2.0) 1, ,096.0 (16.4) (1.5) Sales of Equipment Total Revenue (6.6) (1.1) 1, ,176.6 (5.2) (0.4) * Numbers may not add up due to rounding. 7

8 Revenue Mix Quarter Ending 30 June First Half Ending 30 June Revenue Mix % mix % mix % mix % mix Mobile services Pay TV services Broadband services Enterprise Fixed services Total Service Revenue Sales of Equipment Total Revenue * Numbers may not add up due to rounding. 8

9 2Q & 1H2017 Highlights Financial Highlights Business Highlights 2017 Outlook 9

10 EBITDA & EBITDA Margin (S$M) 34.7% 33.2% 34.2% 31.6% Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 EBITDA Margin as % of Service Revenue * Numbers may not add up due to rounding. 10

11 Cost Of Sales (S$M) 42% 37% 39% 38% Q2016 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 rounding. 11

12 Other Operating Expenses (S$M) 43% 42% 43% 41% Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 Depreciation Other G&A Marketing & Promotion Operating Expense / Revenue * Numbers may not add up due to rounding. 12

13 Net Profit After Tax (S$M) Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 * Numbers may not add up due to rounding. 13

14 Capex (cash payments) (S$M) 19.8% 12.7% 8.3% 7.7% Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 * Numbers may not add up due to rounding. Capex / Revenue 14

15 Free Cash Flow (S$M) Q Q2016 3Q2016 1Q2017 2Q2017 1H2016 1H2017 (45) * Numbers may not add up due to rounding. 15

16 2Q & 1H2017 Highlights Financial Highlights Business Highlights - Mobile 2017 Outlook 16

17 Mobile (2Q-2017 vs 2Q-2016) Total customer base expanded 55k Post-paid ARPU decreased S$1 to S$70 17

18 Mobile Customer Base ( 000) 2,235 2,307 2,275 2,291 2, % 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

19 Post-paid Average Monthly Churn Rate (%) Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

20 Mobile Revenue (S$M) Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

21 Mobile ARPU (S$ per month) Pre-paid Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 (S$ per month) Post-paid Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

22 2Q & 1H2017 Highlights Financial Highlights Business Highlights Pay TV 2017 Outlook 22

23 Pay TV (2Q-2017 vs 2Q-2016) Revenue decreased 8% ARPU at S$51 Customer base decreased 41k 23

24 Pay TV Base & Churn ( 000) Customers Q2016 3Q2016 4Q2016 1Q2017 2Q2017 (%) Average Monthly Churn Rate Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

25 Pay TV Revenue & ARPU (S$M) Revenue Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 (S$ per month) ARPU Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

26 2Q & 1H2017 Highlights Financial Highlights Business Highlights - Broadband 2017 Outlook 26

27 Broadband (2Q-2017 vs 2Q-2016) Revenue decreased 3% ARPU decreased by S$1 to S$36 Customer base decreased by 6k 27

28 Broadband Base & Churn ( 000) Customers Q2016 3Q2016 4Q2016 1Q2017 2Q2017 (%) Average Monthly Churn Rate Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

29 Broadband Revenue & ARPU (S$M) Revenue Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 ARPU (S$ per month) Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

30 2Q & 1H2017 Highlights Financial Highlights Business Highlights Enterprise Fixed 2017 Outlook 30

31 Enterprise Fixed (2Q-2017 vs 2Q-2016) Data & Internet revenue increased 4% Voice revenue decreased 18% 31

32 Enterprise Fixed Revenue (S$M) Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

33 Voice/Data & Internet Revenue (S$M) Voice Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H2017 (S$M) Data & Internet Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1H2016 1H

34 2Q & 1H2017 Highlights Financial Highlights Business Highlights 2017 Outlook 34

35 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 4.0 cents per ordinary share for 2Q2017 Intend to pay a quarterly cash dividend of 4.0 cents per ordinary share for FY

36 Investor Relations Contact Investor Relations Contact For IR-related queries, please or call: Jeannie ONG Chief Strategic Partnership & IR Officer DID: / Eric LOH AVP, IR DID: / 36