What’s the main culprit behind StarHub’s dipping mobile revenue?

Its roaming earnings have taken a huge hit.

The telco has seen dipping mobile earnings recently, and analysts say softer roaming revenue is to blame.

According to a report by Maybank Kim Eng, service revenue was flat due to lower mobile and pay TV revenue.

“However, softer roaming revenue is the main culprit behind lower mobile revenue, where profitability should be maintained due to lower interconnect tariffs. Similarly for the Pay TV business content costs can also be adjusted down, in line with lower revenue,” the report noted.

Meanwhile, the report said Fixed Enterprise was intact and growing 2Q enterprise growth was encouraging at c.2%.

“The segment remained StarHub’s second largest contributor after mobile, having recently overtaken Pay TV,” Maybank Kim Eng added.

“A growing customer base will allow StarHub to add more corporate services and cross-sell them to other customers as well. In addition, margins are better as customer acquisition and retention costs are lower,” the report said.

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