More headwinds on the horizon for StarHub in FY16: report

Its subscriber base is steadily shrinking.

StarHub is going to have its hands full in FY16, as a waning subscriber base and shrinking adoption grant continue to pose a threat on the company’s profits.

According to a report by DBS, StarHub’s Pay TV business lost 8,000 subscribers to reach 528,000 as StarHub stopped its TV Lite promotions, leading to a slight dip in Pay TV revenue. In addition, Netflix entered the market early this year, so it could also be attributed to Netflix’s entry.

Meanwhile, the company’s broadband business lost 3,000 subscribers to reach 473,000 although revenue inched up slightly on back of increased ARPU from increased take-up of fibre broadband plans.

These drops in subscribers could spell disaster for StarHub, as they undermine the company’s hubbing strategy. To this end, DBS expects StarHub tp up the ante by being more aggressive in trying to retain or grow its subscriber base.

DBS also reports that the adoption grant may slip in the coming quarters. Q1 enjoyed $12.6m in “other income,” most of which came from adoption grant for fibre broadband take-up.

Management anticipates the adoption grant to fall in end-FY16, while DBS estimates that “other income” could tumble to $26m in end-FY16, from $46.5m in FY15. As such, subsequent quarters would likely see smaller adoption grants going forward.

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