In the mobile space, we note that the group has added 74,000 post-paid subscribers to its customer base, which we believe stems from greater SIM-only take up.
Management is currently still in the process of negotiating with content providers to operate on a variable Pay TV cost model, rather than a fixed cost one. As we understand, there is one more major contract left to renegotiate. Since our downgrade in mid-February, the stock has declined by 16.8 per cent. StarHub is now trading at an enterprise value/Ebitda multiple of 6.3 times, which is 2.3 standard deviations below its five-year mean.MAY 6 CLOSE: $25.85Q1 2019 revenue and Patmi were in line with our estimates, meeting 25 and 24 per cent of our full-year forecasts respectively.
Robust loans growth of 12.2 per cent year on year was led by a broad-based increase across all territories and industries. Trading income and gain from investment securities rose 38.9 and 133.3 per cent year on year respectively, benefiting from a rebound in financial markets.