A short mention of Starhub since it is one of my larger holdings. The Q1 result released on May 4 was not bad. You can view the presentation slides here & the full results here.
- EBITDA was consistent versus last year as well as last quarter. Q1 was traditionally a weaker quarter so result is not bad
- Free cash flow was weaker than last year but still inline as they have less contributed from net working capital. As such full year free cash flow should come up to 430 mil which is more than adequate to pay 340 mil for their 20 cent annual dividend
- As they need 85 mil each quarter to pay out the 5 cent dividend, they have more than adequate
- Capex is 7% of revenue which is lower than the targeted 11% outlined by StarHub. However we do see that starhub have a tendency to spend ...
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