Additionally, forex losses from USD-denominated Pay TV content and heavy investments in customer service will further exacerbate the situation, which Yap underscores is “not just a 2017 phenomenon, but a three-year one”.
SINGAPORE (March 31): Maybank Kim Eng Research continues to rate StarHub at “sell” at an unchanged price target of $2.49, foreseeing turbulent times ahead for the local telco despite it announcing a game plan to manage recent changes in the industry.
In a report on Thursday, analyst Gregory Yap recalls how StarHub’s management expects the group’s EBITDA margin to fall to 26-28% this year from over 30%, as NBN adoption grants will fade and handset subsidies will grow due to two big handset launches this year as well as subscriber-ring-fencing ahead of TPG Telecom’s entry.
