Starhub

Starhub: Results within consensus, 4Q10 rev at $559.0m, +1.6%yoy, +1.2%qoq. Net profit at $80.4m, +8.4%yoy, -1.6%qoq. EBITDA at $169.9m, +11.7%yoy, -2.5%qoq. Increases in mobile (+8%yoy) and fixed network (+4%yoy) services revenue compensated for decline in cable (-2%) and broadband rev. Net adds if 1k to cable were a positive surprise but broadband growth (22k new subscribers) was driven by take up of lower price-plans resulting in a falling ARPU (-2.1%qoq)…

Mobile rev was strong with 8% yoy growth. Capex set to increase for FY11 due to capex backlog and invt into undersea cable. Despite EPS of 4.69c this quarter and FY EPS of 15.34c, co has declared, as expected, dividend of 5c, 7.7% yield and expects to maintain the payout of 5c per quarter...

Deutsche maintains co as sector top pick Buy with TP$3.00 due to prospective yield of 8.0%. GS is negative, maintaining Sell with TP$2.30 due to rich valuations despite yield. Citi maintains Sell with TP$2.43.