● We expect the company's consolidated service revenue to decline at a three-year CAGR of 2.0% led by 5.9% decline in mobile service revenue and 8.8% in pay TV revenue. Given the top-line weakness, we expect consolidated EBITDA and net profit to decline at a three-year CAGR of 6.6% and 19.5%, respectively.
● We do not think StarHub can sustain paying an annual dividend of S¢16.0/sh given the expected rise in mobile competition and structural headwinds in the pay TV business. Hence, we reduce our annual dividend forecast to S¢10.0/sh from 2019E onward.
Source : Credit Suisse Asia Pacific Equity Research
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