Starhub

Starhub: Better than expected results. 4Q Rev at $612.6m +9.6% yoy +7.1% qoq. Net profit at $92.6m +15.1% yoy +22.2% qoq. For this quarter, co saw an increase in Pay TV services rev at $98.7m which was up $6.9m or 8% yoy driven by higher subscriber base and ARPU (avg rev per user). Rev from sales of equipment at $53.2m was higher by 160.5% yoy as well due to strong demand for iPhone 4S in Oct 2011 which accounted for the quarterly outperformance as well. Other segment all rose in terms of rev. EBITDA margins were supported by revenue writebacks (one offs) excluding which would have been relatively in-line with consensus estimates at approx 30.7%

Post-paid mobile ARPU was S$76 for the quarter and S$74 for the full year, up from S$73 and S$72 in the same periods last year.

Total outstanding capex was $195.1m compared to $137.4m mainly for expansion and enhancement of existing network and set tops for the Pay TV business. The Next Gen NBN passive network is expected to be rolled out and reach 95% coverage by June 2012.

EPS for quarter at 5.4c. Maintains dividend of $0.05 for the quarter

Deutsche maintains Buy with TP raised slightly from $3.00 to $3.03

JP Morgan maintains Neutral with TP$2.70

Citi maintains Neutral with TP$2.70 raised slightly from $2.69

Goldman maintains Sell with TP$2.55