Daily news - 6 Nov

StarHub Q3 net profit dips 2.1% to $79.5m
StarHub's third-quarter net profit fell 2.1 per cent to $79.5 million due to higher content costs for its pay-TV business and a flat showing by its mobile and broadband units. Revenue for the three months ended Sept 30 was 2.3 per cent higher year on year at $524.6 million, but earnings per share slipped to 4.65 cents from 4.78 cents. StarHub yesterday declared a quarterly dividend of 4.5 cents, unchanged from Q2, and reaffirmed its commitment to pay at least 18 cents in 2008. This translates to a minimum dividend payout of 4.5 cents for the final quarter. Singapore's second-largest teleco continues to bear the brunt of soaring content prices for pay-TV, with the cost of services rising 21 per cent year on year to $73.1 million in Q3, which raised operating expenses 3 per cent to $417.6 million. On the mobile phone front, the promotional frenzy sparked by the introduction of True Mobile Number Portability in the second quarter is easing, according to StarHub CEO Terry Clontz. This led to lower handset subsidies, which consequently reduced the cost of equipment sold by 19 per cent sequentially to $51.7 million.

UOL reports 14% rise in Q3 earnings
UOL Group – Bucking the trend of falling profits at many Singapore-listed property developers, UOL Group yesterday reported that its third-quarter net profit rose 14 per cent to $73.5 million, from $64.5 million a year ago. Group revenue for the third quarter ended Sept 30 jumped 61 per cent to $267.9 million - up from $166.7 million for the corresponding three months of 2007. The increase was largely from the progressive recognition of revenues from the sale of homes, including those in Panorama and Breeze by the East which were launched earlier this year. Revenue from property investments also improved due to higher average rental rates for the company's investment properties and contribution from the Pan Pacific Serviced Suites, which opened in April 2008. Since its opening, the five-star serviced suites had improved its occupancy to almost 85 per cent. Earnings per share for Q3 2008 rose to 9.24 cents, from 8.11 cents a year ago. For the first nine months of 2008, UOL's net profit fell 39 per cent to $261.4 million - from $426.8 million in 2007 - mainly due to lower fair-value gain on investment properties and absence of gain on sale of an investment property. Revenue for the first three quarters rose 24 per cent to $638.9 million, from $514.1 million for the same period in 2007. UOL sounded a warning as it looked ahead. The tightening of credit and the weak share market will affect buying sentiment in the Singapore residential property market, UOL said. Demand for office space will also be affected as companies scale down their activities and rental rates are expected to soften, the company added.

Delong posts Q3 net loss of $11.9m
Delong Holdings yesterday reported a third-quarter net loss of $11.9 million, compared with a net profit of $24.7 million for the year-ago period. Q3 sales rose 59.7 per cent to $637.5 million. The group was hit by a significant increase in raw material prices.

Source: Kim Eng