SINGAPORE -- StarHub, Singapore's No. 2 telecommunications company, posted a net profit of 341.4 million Singapore dollars ($241.4 million) for its full year ended December, a 8.3% decrease from a year ago, mainly due to lower mobile usage revenue and a slower pay-TV market.
Despite higher subscription revenues from broadband services, StarHub saw revenue fall by 1.9% on the year to S$2.39 billion. Lower revenue from equipment sales including mobile phones were the main cause for the fall in earnings.
Pay-TV revenue fell by 3.4%, to S$377.8 million, mainly due to a smaller customer base which decreased by 7.2% compared with a year ago to 498,000. Stronger competition from alternative pirated content sources and other available streaming options contributed to the dip.
The core mobile phone service, which generates slightly more than half of the revenue, fell by 2% to S$1.21 billion. Despite a larger customer base with higher subscription revenues, it was insufficient to offset lower mobile usage.
StarHub is working hard to strengthen its core mobile sector as a fourth player -- Australia's TPG Telecom -- is preparing to enter the market with a services rollout target date of September 2018. Last month, StarHub signed a memorandum of understanding with third-placed telecom company M1 to work more closely in shared mobile infrastructure. In December, it launched the "DataTravel" plan for its postpaid customers, who can use 2GB or 3GB of data for a full 30 days of use across multiple overseas destinations.