Asian Pay Television Trust (APTT)

[Greenrookie]

I had a quick look at Starhub. It has been paying about 340 million in dividends a year. Its free cashflow for the last 2 years has been 461 and 291 million respectively (difference has been capex looks like). It is also fairly similarly indebted. It faces fierce competition with SingTel in an almost saturated market.

So..... would anyone venture to explain why Starhub is a 5% yielder and APTT is a 10% yielder? FX accounts for some of it of course, but this is a very wide gap.

Hi tanjm,

Agreed, granted competition is expected to increase for APTT due to rezoning, but the market is not saturated, it has only 67% penetration rate. I am not sure if market is over-accounting for this risk. I am not sure Starhub growth prospect is any more visible than APTT.

I think the gap can be due to the following:
1) Macquarie poor record, as in MIIF shares price, the US debt swap failure.
2) The complexity of a trust as compared to starhub as a plain company.
3) Prudential relentless sellling.

But then again, the yield gap is too big.