All data found in this report can be reference @ this Google Doc>>
Starhub announced its Q2 Report and here are some notable observations:
- Revenue is doing well. Revenue have been improving since last year’s Q2 as well as last quarter
- Cost have been climbing higher. On a half yearly note, cost have increased from 855 mil to 991 mil. Its not significant, but you will see in the next observation how it affects profits.
- Profit overall fell 25% from 148 mil to 109 mil quarterly. You will have to go back to Q1 2010 or Q1 2005 to find a profit this low. What this means is that it is definitely not a good sign as competition gets tougher.
- The balance sheet presents 2 significant figures. While short term bank loans differ from Q2 2009 by a reduction of 180mil, long term bank loans balanced out in Q2 2010 by an addition of 150 mil. In terms of debt finance, not much changed there.
- On a group balance sheet, the total equity is 57 mil! The question is will we reached zero or negative equity??? Do take note that at the company level Total equity is at 1.1 billion. I have an old reply from Starhub’s investor relations talking about their low equity to debt situation.
- Net Operating Cashflow fell from 217 mil(2010 Q2) to 154 mil(2009 Q2). In a sense, working capital was higher in 2009 to the tune of 40 mil. So that should partly account why cashflow is lesser in 2010. Read more…