Saturday, 4 February 2017

Starhub FY 2016 Financial Results

Starhub FY 2016 results was released last evening. Disappointed results indeed, and seems worse than M1. This shall be a short post with no fancy charts or iconic pictures. 穷小子 had no mood to elaborate further but will not sugar-coat the results.
If you had followed 穷小子 throughout, you must have known that 穷小子 had bought the telcos at early 2015, which is around the all time high and is one of the bad moves. Mainly due to the greed on the attractive dividends yield at that time, and no patience. 穷小子 is not trying to bad-mouth the company but serve more of a reminder to himself. Do remember that he is affected as well.
Total telcos shares holdings is about 29.71% of the total portfolio , and among this telcos shares holdings, Starhub is holding at about 47.68% as of yesterday.

In summary, YoY results:
Total revenue, down 2%
EBITDA, down 3%
Net Profit after Tax, down 8%
FCF / Fully Diluted Share, down 15%

More disappointed at the QoQ results:
Total revenue, Non significant changes
EBITDA, down 14%
Net Profit after Tax, down 33%
FCF / Fully Diluted Share, down more than 300%

Most disappointed will be on the dividends.
FY 2016 will be maintained at $0.05 per quarter, but intend to pay a quarterly dividend of $0.04 per quarter for FY 2017.

Moving forward, 穷小子 will not panic sell, but plan to average down slowly whenever possible.
The attractiveness for this stock gets dimmer as the forecast payout for FY 2017 will be at $0.04 per quarter, $0.16 per year, a 20% cut. This greatly change the stories for 穷小子on Starhub, for all the reasons which he bought in the first place.
Next step will be work hard, save more, and build more warchest. The telco industry in Singapore will going to be a long cold war. Embrace for a sell down on Monday, but who knows how Mr Market may react irrationally again.


  1. Good luck. The dividend cut affected the share badly. My investment in M1 is facing a similar issue ( 4th telco )

    1. The worst part of the story is 穷小子 has M1 shares too. I feel you Bro..