StarHub

StarHub: CLSA issued a report today on the Company, maintaining an UNDERPERFORM, and a TP of $3.79. CLSA notes that the recent hike of 50% subscription for StarHub's sports package from 15 Jan 2013 are mitigating rather than incremental, on a) increase in content costs, or b) decline in subscribers. The house expect 2013 to be a tough year for Starhub, noting 3 points: 1) StarHub is not adding significant new TV subscribers; in fact it has lost 3k subs YoY over the past 2 quarters, 2) StarHub is paying more to fight for and obtain content, and 3) StarHub is seeing cuts in margins competing for subs against SingTel’s loss-making MIO TV platform. StarHub’s implied “gross profit”/TV sub had declined ~9% YoY in 3Q12. At current price of $3.82, the fixed $0.20/sh Dividend is at 5.2%.