A few bloggers have written about whether Starhub’s dividend of 16 cents per year is sustainable when Starhub released its results in Feb. This time last year, I reviewed the prospects of its various business segments and concluded that challenging times were ahead for Starhub’s dividends. See Challenging Times Ahead for Starhub’s Dividends for more info. In today’s blog post, I will update the review and discuss whether Starhub’s dividend of 16 cents is sustainable. Although mobile services is the largest business segment, I will discuss it last, for reasons explained later.
Pay TV
If you read Is Pay TV Still A Reliable Cash Cow?, you would know that the traditional advantage of Starhub over the other telcos is its cable TV network infrastructure, which is used to provide not only Pay TV but also cable broadband services. The cost structure for Pay TV is fixed capital cost for …