StarHub: CLSA maintains Sell with TP of $3.10
- 1Q16 core earnings of $93m (+22% y/y) as lower handset subsidies helped drive improved earnings, pared falling mobile ARPU to $68/mth
- EBITDA margin guidance at 31% despite 1Q16's EBITDA margin of 33.8%, implying increased cost factors in 2H16
- Management expects subsidies to jump in 2H16 due to the handset cycle.
- With increased competition from newly launched Circles Life and a 4th telco on the horizon, Starhub should continue to see pressure on its financials.
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