Euro 2012 broadcasts boost StarHub earnings

Singaporean operator StarHub has reported an impressive 11% rise in profit thanks to revenue growth across all of its operations and a boost from its broadcast of Euro 2012 football matches in the summer.

The company’s second-quarter net income rose to S$87 million ($69.8 million), from around S$78 million in the same period last year, while revenues grew by 4% to S$591 million.

StarHub reported revenue growth at each of its mobile, pay TV, broadband and fixed network divisions, but enjoyed particular success in broadcasting.

Singaporean operator StarHub has reported an impressive 11% rise in profit thanks to revenue growth across all of its operations and a boost from its broadcast of Euro 2012 football matches in the summer.

The company’s second-quarter net income rose to S$87 million ($69.8 million), from around S$78 million in the same period last year, while revenues grew by 4% to S$591 million.

StarHub reported revenue growth at each of its mobile, pay TV, broadband and fixed network divisions, but enjoyed particular success in broadcasting.

Pay TV revenues rose by 12% to S$103.7 million as customers paid more to receive coverage of football matches played during the summer’s Euro 2012 competition in Poland and Ukraine. Although subscriber numbers were unchanged at 543,000, average revenue per user (ARPU) was up by S$5 to S$54 for the quarter.

“We are pleased to see an 11% growth in profits for the quarter and a successful broadcast of the UEFA Euro 2012, the first exclusive content subject to the cross-carriage regime,” said Mr Neil Montefiore, chief executive of StarHub. “Our subscribers were also able to enjoy the sports event on our inaugural TV Anywhere service; an internet TV platform available on multiple screens, anytime, anywhere.”

The results add to the evidence that compelling sports content is one of the best ways for operators to raise customer spending.

Although pay TV was the highlight of StarHub’s results, mobile revenues were also up on the second quarter of 2011, growing from S$302.5 million to S$306.2 million. While prepaid users are cutting back, with monthly ARPU falling by S$2 to S$18, postpaid subscribers are spending more each month, generating S$75 compared with S$73 a year earlier.

StarHub also reported broadband gains, growing revenues by 2% to S$62.4 million as it shifts customers on to pricier higher-speed plans, while fixed network revenues rose by 6% to S$88 million, due mainly to the take-up of data and internet services.