StarHub

1st Quarter 2019 result is out!
Total gross revenue is up 6% to 598m.
However net profit is down 22.3% to 49.3m versus 64.3m last year.

Dividend of 2.25 cents has been declared.

Now let us take a look at the cash flow statement:

Net cash from Ops is 66.7m less capex 45.4m.
FCF is 21.3m .
Total no of share is 1734,757,000.

If you take dividend to be paid out if $22.5 x 1,734,757 = 39.032m.

FCF is not sufficient to cover the Dividend payout !

I think is good to be mindful of this negative FCF that is still not sufficient to cover this dividend payout of 2.25 cents.

Pls dyodd.



Let us work out the Free cash flow for StarHub base on their financial result for 2018.

As can be seen from their Cash Flow statement for FY2018,  Ops cash flow after working capital changes is $446.6m.

FCF = $446.6m less CAPEX of $ 272.8m = $ 173.7m.

Dividend of about 9 cents (2.25 cents x 4) to be paid out for Y2019 is about 1,730,698,702 shares X $90 , which is about $155.76m.

It looks like the FCF of $173.7m less dividend of 9 cents to be paid in Y2019 of $155.76m,we have a positive FCF of $17.94m.


However, if we take a look at the Bank loan to be paid up in one year is $50.1m.

Therefore, I think the balance of FCF of 17.94 is not sufficient to cover the bank loan $50.1m beside the interest to be payable for the remaining bank loans + perpetual notes etc.


The group net debts level is quite high at 1.52x.

This is just my observation base on the financial figures being extracted from the FY2018 statement.

This is just for sharing and not a call to buy or sell for this counter.

It is good to do you own analysis.