Starhub

(19-03-2018, 01:20 PM)BRT Wrote: "there will be 14 retailers participating in the soft launch,"
some highlights >>> http://www.straitstimes.com/singapore/14...ity-market

i'm mixed on how good a market this will be. on one hand hyflux constantly cites the weak electricity market for underperformance, but sembcorp local generation business seems okay/doing well. consumers are clear winners though, with more choices and lower prices to be expected.

They definitely have to come up with other services to generate revenues. as their StarHub cable TV might not be making so much profits like the past. Especially with Netflix or tv boxes of different company readily available in the market now...

Generally, those who own the customer's relationship will OWN the negotiation power. In this case, Starhub owns the customer relationship but the fact is well known now and so to compete further, content owners are creating the customer relationship (Disney creating their own channels and cutting off Netflix) while customer relationship owners are creating content (Netflix spending billions to create their own serials). The distribution channels are also getting more competitive with more aggregators/distributors vying for the same content.

With a reducing subscriber base, it will find it increasingly more costly to spread out its cost of content. Starhub's negotiation power is further weaken with Singtel TV also offering similar content in the same geography. If the impasse continues, this could turn into a downward spiral for Starhub's cable TV business (less content --> less subscribers --> less money to buy content..)

Discovery's portfolio of 11 TV channels to be dropped from StarHub after June 30

AFTER June 30, StarHub television subscribers could be losing seven popular lifestyle channels including Discovery Channel, Animal Planet and TLC. Then, after Aug 31, four more channels including Food Network, HGTV and Asian Food Channel could also be gone.

All of these channels fall under the Discovery brand, which is known for producing educational as well as entertaining lifestyle and science programmes.

https://www.businesstimes.com.sg/compani...er-june-30

https://www.discoverychannelasia.com/  --> interesting to see some sort of petition/appeal for Starhub customers to voice out, by Discovery at their page.

Discovery pulled the same stunt with SKY last year when negotiation also hit an impasse. Like now, Discovery also rallied its supported to 'keep discovery'. Eventually, SKY and Discovery came to an agreement at the last minute and normal operations resume.

It's like de-ja-vu all over again ala Starhub's quarrel with Fox Network Group 2 years back. But something is different this time. I find it strange that no only is Starhub pre-empting customers by informing them early, offering free previews, suggesting alternatives and promising to bring in fresh contents. I do not remember them doing that the last time when they hit an impasse with Fox.

So perhaps Starhub is resigned to losing Discovery. And maybe that's not a bad thing in the long run. In the end, it's just a business decision and if the cost does not make sense, then Starhub should not be afraid to walk away. It's a little telling that both Sky and Starhub (experienced broadcast operators) felt that Discovery is asking for too much money.

'Just a cup of coffee' Discovery? Are we talking Starbuck coffee or kopitham coffee?? 

In this TODAY report, Starhub told TODAY "Based on the viewership data taken directly from our set-top boxes, we can share that Discovery’s channels have seen a steady decline in viewership over the last three years.”

That is consistent with my own viewing experience. I do not watch as many Discovery programs nowadays compared to 2-3 years back.

So Discovery may just be pricing themselves out and having an over-inflated view about the value of their shows. And frankly, apart from a handful of shows like Deadliest Catch, Mythbusters, Wheeler Dealer, the quality of their shows has been deteriorating over the years. 

If Discovery is cut, of course, Starhub will take a hit in the short run. But if Starhub is smart about it, they will offer a bill rebate to all who subscribed to Education and Lifestyle groups. It does not have to be a big rebate. Just a $2-$4 rebates for 6 months will do wonders to patch over the short-term anger subscribers have. And in times, people will adjust their viewing habits accordingly.

Starhub's dividend-paying abilities are stretched... coupled with the latest Q1 earnings decline, I foresee future cuts in dividends. It simply can't fund its current dividends out of its ordinary cash flows after deducting capex.  

Quote:lectronics manufacturer Venture Corp will be added to the MSCI Singapore Index while Dairy Farm International will be included in the MSCI Hong Kong Index. Top Glove Corp will be added to the MSCI Malaysia Index.

Hutchison Port Holdings Trust and StarHub will be removed from the MSCI Singapore Index and included in the MSCI Singapore Small Cap Index.

https://www.businesstimes.com.sg/compani...-revisions

To support a 16 cents dividends, starhub needs to have free cash flow of $277 million.

Based on its recent few quarter cashflow, Starhub is likely only able to generate $590 million on a full year basis. Netting off cash outflows such as:

i) Maintenance Capex - s$290 mil (based on past data)
ii) Income Tax of about s$60 mil
iii) Finance Expense of s$32 mil
iv) Annual distribution to perpetual holders of s$7.9 mil
v) Government Grant of $10 million (cash inflow)

Starhub has only about $210.1 million to distribute as cash flow. It translates to a 12 cents dividend. Currently Starhub has about 270 million in cash reserves (after netting the upcoming dividend out cash flow). With a upcoming bond due in Sep 2022 of $200 mil, Starhub either has to Conserve cash to repay or it can roll over with a new bond which is likely to be of a much higher rate.

(02-06-2018, 11:33 AM)CY09 Wrote: To support a 16 cents dividends, starhub needs to have free cash flow of $277 million.

Based on its recent few quarter cashflow, Starhub is likely only able to generate $590 million on a full year basis. Netting off cash outflows such as:

i) Maintenance Capex - s$290 mil (based on past data)
ii) Income Tax of about s$60 mil
iii) Finance Expense of s$32 mil
iv) Annual distribution to perpetual holders of s$7.9 mil
v) Government Grant of $10 million (cash inflow)

Starhub has only about $210.1 million to distribute as cash flow. It translates to a 12 cents dividend. Currently Starhub has about 270 million in cash reserves (after netting the upcoming dividend out cash flow). With a upcoming bond due in Sep 2022 of $200 mil, Starhub either has to Conserve cash to repay or it can roll over with a new bond which is likely to be of a much higher rate.

A 2 cents per quarter dividend is more realistic.

(15-08-2014, 12:45 PM)Dividend Warrior Wrote:

(15-08-2014, 12:43 PM)specuvestor Wrote: You are still confusing EPS with FCF For example in 2010 EPS was 0.15 and DPS was 0.20, but in terms of cashflow it was operating cashflow of $700m and capex $270m so FCF was $430m out of which they paid $343m for dividend

But last year their operating cashflow was only $580m and capex jumped to $300m which was not sufficient to fund their dividend of $343m. That is what we are discussing about.

This is a good summary.

https://www.valuebuddies.com/thread-496-...l#pid91683

Point to note here is not only it’s foreseeable but how long it can take for reality to bite. Fundamentals is not an overnight occurrence

This update might be a tad late about the battles among the telecos.

Circle Life is now offering $0/month 1GB Sim-only plans which comes with Caller ID/Free Incoming/30 min outgoing talktime. However there are add ons such as paying $10 per month for every 2 GB of data. The new plan is better than Starhub who is charging $24/month for its 3GB+weekend unlimited Sim only plans with no caller ID but with more free talktime (100mins). The current 3 telecos charge consumers about $5.35/month for caller ID. If they are expected to compete with circles Life by providing caller ID to their Sim-Only plans, we can expect another fall in ARPU. Furthermore Circles Life has tied up with Ez Link in which users are rewarded with 100MB of data for every 10 rides they clock in a week

The teleco scene is getting interesting and I am starting to wonder how is Stahub going to service its close to 1 billion debt load without compromising on dividends.

My suggestion is to suspend dividends, repay down debts to build up a strong balance sheet to compete. TPG has not even entered the fray yet...

(10-06-2018, 04:52 PM)CY09 Wrote: Circle Life is now offering $0/month 1GB Sim-only plans which comes with Caller ID/Free Incoming/30 min outgoing talktime. However there are add ons such as paying $10 per month for every 2 GB of data.

What you mention above is different from what Circles.Life customer service told me. The $0/mth plan comes with 1GB free caller ID.
NO free incoming calls. Total incoming + outgoing is 30mins. Free incoming SMS. Outgoing SMS is 10 i think. Every 1GB additional costs $5 which the person need to top it up via Circles.Life hp app. There is NO way to top up for free incoming calls for this plan. Corporate plan does not apply for $0/mth plan. This plan only suits pp who dont talk a lot via traditional voice calls.

Comparing M1 mySim20 (I think) plan to StarHub plan, M1 charges $20/mth for 5GB for a one year contract. no unlimited weekend data usage though.

(10-06-2018, 08:43 PM)Bibi Wrote:

(10-06-2018, 04:52 PM)CY09 Wrote: Circle Life is now offering $0/month 1GB Sim-only plans which comes with Caller ID/Free Incoming/30 min outgoing talktime. However there are add ons such as paying $10 per month for every 2 GB of data.

What you mention above is different from what Circles.Life customer service told me. The $0/mth plan comes with 1GB free caller ID.
NO free incoming calls. Total incoming + outgoing is 30mins. Free incoming SMS. Outgoing SMS is 10 i think. Every 1GB additional costs $5 which the person need to top it up via Circles.Life hp app. There is NO way to top up for free incoming calls for this plan. Corporate plan does not apply for $0/mth plan. This plan only suits pp who dont talk a lot via traditional voice calls.

Comparing M1 mySim20 (I think) plan to StarHub plan, M1 charges $20/mth for 5GB for a one year contract. no unlimited weekend data usage though.

Hi bibi,

apologies my bad. Yup checked, Circles life does not give free incoming calls.