StarHub's mobile revenue slipped 1.5% to $302m

Lower subsidies offset this weakness.

According to DBS, mobile revenue dropped (11.2) 1.5% y-o-y to S$302m due to similar decline in postpaid ARPU as a (8.6) result of lower roaming revenue.

DBS sees a structural decline in roaming revenue as more consumers use Wi-Fi and local data-cards when overseas. Cable TV revenue also dropped 1% y-o-y to S$95m due to loss of 4K subscribers in 1Q13.

Here's more from DBS:

Lower subsidies and higher grants boosted earnings. On a positive note, lower handset subsidies resulted in cost savings of about ~S$5m versus 1Q12 as Android phones become more popular.

Other income increased by S$8m versus 1Q12 as StarHub’s subsidiary, NucleusConnect, received a grant for the adoption of 100 Mbps plus broadband service.

Mobile revenue expected to recover in 2H13. Generally there is seasonal rise in roaming revenue in 2H. More importantly, customers on tiered data-plans will start to pay excess data-usage charges in 2H13 as the additional 1GB data promotion expires in 1H13.

Pay TV and broadband may continue to face challenges though.

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