(26-02-2015, 09:33 PM)CY09 Wrote: [ -> ]Actually Starhub is a very unique company. If it holds back 2 years of dividend and use it to repay borrowings, it can pump up its dividends by 6% because it no longer has to pay interest expenses and can rewards shareholders more.
If they do that, what will be the share price for those 2 years?
Somehow, I think that everyone who buy into the telcos shares are expected them to pay out generous dividend year in year out. Even Singtel and M1 are pushing up their dividend payout ratios over the past few years.
(26-02-2015, 07:56 PM)Damien Wrote: [ -> ]If you take a look at their free CF, you will find that there is a very slim chaance for their dividends to grow. Almost 100% payout. It is good if they can maintain it already.
Actually they could theoretically increase their dividends considering their last Q rev and FCF increases. However the Media hub Project will drain their FCF for the next 1-2 years to further the income stream. So we would expects maintaining dividends for FY15.
(26-02-2015, 09:33 PM)CY09 Wrote: [ -> ]Actually Starhub is a very unique company. If it holds back 2 years of dividend and use it to repay borrowings, it can pump up its dividends by 6% because it no longer has to pay interest expenses and can rewards shareholders more.
Does other telcos have similar uniqueness? I reckon they do have, with slight variation.
Comparing 2014 with 2010 dividend payout (exclude special) below. We can see other telcos can pay higher without going thru the proposed "painful process".
SingTel: $0.142 (2010), and $0.168 (2014)
M1: $0.14 (2010), and $0.189 (2014)
Starhub: $0.20 (2010), and $0.20 (2014)
(vested in M1)
Think the telco sector is extremely interesting to watch for the next few years.
Personally i think Starhub esp is under fire on all fronts.
For fibre, Singtel finally offered 1Gbps @ $50 at the IT show compared to M1 (49) and Republic ($49.99)
http://www.hardwarezone.com.sg/tech-news...d-february
Starhub's response so far seems to be 1Gbps+100Mbps cable @ 69.90. How long can starhub hold out?
For 4G, MyRepublic is planning to come on.
For PayTV, threats of the likes of AppleTV looms (though not available yet locally).
For years, the moats of cable and hubbing has served Starhub well - will be interesting to see how Tan Tong Hai reacts.
(20-03-2015, 10:24 AM)AQ. Wrote: [ -> ]Think the telco sector is extremely interesting to watch for the next few years.
Personally i think Starhub esp is under fire on all fronts.
For fibre, Singtel finally offered 1Gbps @ $50 at the IT show compared to M1 (49) and Republic ($49.99)
http://www.hardwarezone.com.sg/tech-news...d-february
Starhub's response so far seems to be 1Gbps+100Mbps cable @ 69.90. How long can starhub hold out?
For 4G, MyRepublic is planning to come on.
For PayTV, threats of the likes of AppleTV looms (thought not available yet locally).
For years, the moats of cable and hubbing has served Starhub well - will be interesting to see how Tan Tong Hai reacts.
Concur. I was expecting Mr. Tan to play very defensive on the trend, once on-board, but I saw nothing, except publicity so far.
(not vested)
I have just read the most recent The Edge article on Starhub.
I paid special attention on Mr. Tan's view on the broadband business. Here are my view
- On one-hand, Mr. Tan and his staff, seem comfortable with the competition. One statement in the article, "CEO Tan Tong Hai provided an optimistic outlook for the broadband business". The rationales are the 1 Gbps fiber broadband still cost above its ARPU, and churn rate still low. It seems they will only start to act, after the numbers deteriorate.
The management still very confident on the hubbing strategy.
- On the other hands, on Starhub lower broadband revenue. The management acknowledged that is due to price adjustment amid the competition.
I wish all the best to the Starhub management. I may be wrong.
(not vested)
Starhub is the only local telco with reducing service revenue, on the recent end-Mar reports...
(not vested)
Starhub sees 12.4% drop in 1Q earnings to $73.7 million
SINGAPORE (May 15): Telco Starhub saw a 12.4% drop in 1Q earnings to $73.7 million from $84.2 million a year ago, hit by lower service revenue and higher handset subsidies.
Total revenue for the three months to March rose 8.1% to $617.9 million from higher equipment sales.
Service revenue was lower by 1% at $540 million mainly due to lower broadband revenue.
The group’s EBITDA decreased 9% to $162 million from $177 million previously. EBITDA margin for the quarter was at 30%.
...
http://www.theedgemarkets.com/sg/article...37-million
1Q15 results disappointing due to increased smartphone sales which did not translate to higher mobile subscription revenue. Looks like the industry is getting more competitive and growth is unlikely to be sustained. However, company still has a strong balance sheet with a decent dividend yield of close to 5% which can offer some diversification benefits for income investors.
http://www.investark.com/Analysis40starhub1q15.html
What's happening to Starhub recently
ST Telemedia to invest $36.9 mil in JV company with StarHub to develop MediaHub
SINGAPORE (July 22): ST Telemedia is entering into a JV partnership with StarHub to operate MediaHub.
Located at Mediapolis@one-north, MediaHub is a specialised telecommunications, media and data centre facility.
MediaHub is also StarHub’s convergence hub for its fixed, mobile and pay TV networks.
ST Telemedia, through its wholly owned subsidiary STT GDC, will acquire a 70% stake in Shine Systems Assets, which holds MediaHub, for $36.9 million.
StarHub will own the remaining 30% stake in Shine Systems Assets.
Prior to this partnership, SSAPL was wholly owned by StarHub.
Under the partnership, the facility will be managed and operated by the JV as a carrier-neutral and highly secure Tier-3 data centre facility.
StarHub will sub-lease space of not less than 65% of the total gross floor area of the facility.
...
http://www.theedgemarkets.com/sg/article...p-mediahub