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StarHub's Q4 net profit slips on lower equipment sales

StarHub posts 4.8 per cent drop in net profit for its fourth quarter, hurt by lower revenue from equipment sales such as mobile phones.

SINGAPORE: Telecoms and cable TV provider StarHub's fourth quarter net profit dropped 4.8 per cent, hurt by lower revenue from the sale of equipment such as mobile phones.

Net profit for Singapore's second largest telecoms firm came in at S$83.7 million in the three months ended December, down from S$87.9 million a year ago.

The firm reported slightly higher mobile and pay TV revenue but said proceeds from broadband fell as a result of greater competition.

For the full year though, StarHub managed a 3.2 per cent rise in net profit to S$370.7 million.

Looking ahead, StarHub said it expects group service revenue to grow in the low single-digit range this year, with profit margins staying around 32 per cent.

The company has proposed a final dividend of 5 cents per share.

This brings its total dividend for FY2013 to 20 cents per share.

"For 2014, we intend to maintain our annual cash dividend payout of 20 cents per ordinary share," StarHub adds.

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