Fourth telco player could capture 7% of mobile revenues

StarHub and M1 could be battered as they've been losing mobile revenue share.

OCBC Investment Research is projecting a 7% drop in industry-wide mobile revenues between 2015 and 2022, while the new entrant could capture 7% of revenue share.

It added that with only 50% of revenues coming from mobile and due to more fixed-mobile-TV bundling, StarHub will be less impacted than M1.

"We expect StarHub's mobile revenues to decrease by 15% (8% drop in total revenue) and earnings to contract by 16% in 2022 versus 2015," it said.

But even in a three-player market, the research house noted that StarHub and M1 have been losing mobile revenue share.

StarHub's mobile revenue share has declined - from 38 % in 2006 to 31% now.

M1's mobile revenue share meanwhile fell during 2006-2011 but has been stable thereafter. Its share dropped from a 26% peak in 2014 to 20% as at August 2016.

StarHub's revenue share losses, however, did not translate into earnings decline mainly due to rising National Broadband Network-related grants recognised under “Other Income”.

However, it project StarHub's “Other Income” to fall from S$46m in 2015 to S$35m in 2016F and disappear in 2-3 years as adoption grants are fully utilised.

As the market becomes a 4-player market, it expects further loss of revenue share at M1 and StarHub.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia