StarHub wil be reporting 2Q10 results today. DB is forecasting 2Q revenues to slip 2% qoq to $547m due to lower equipment, cable TV and broadband sales. Ebitda margins should recover qoq to 26.5% but will still be down yoy. Net profit is expected to come in at $65m (-17% yoy but +52% qoq).
Going forward, the focus will be on the impact of pay TV and broadband revenues following the loss of EPL but so far, the subscriber churn has not been as severe with a projected loss of 40k net pay TV subscribers by end 2010. Stock is backed by a 20¢ DPS target, which translates to an attractive 8.5% yield.
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