Singapore Pay-TV ARPU and Take-Up

StarHub recently announced their mid-year financial statement, and that their quarterly Pay-TV revenue from Q1 to Q2 FY13 had decreased 8% to S$95.6m with Average Revenue Per User (APRU) of S$52 for the quarter.

Pay TV revenue decreased 8% to S$95.6 million from S$103.7 million for the quarter, and 5% lower YoY at S$190.3 million for the half-year period. The UEFA EURO 2012 broadcast contributed to the higher Pay TV services revenue a year ago. The lower advertising revenue and a lower subscriber base also partly affected the reduced revenue. Pay TV ARPU at S$52 for the quarter and half-year periods were comparable to last year after excluding the impact of UEFA EURO revenue earned in 2012.

Nextvasia‘s article confirms these numbers, stating the following:

Singapore´s telecommunication and pay-TV provider StarHub states that their customer base has reached 532 thousand by March 31, 2013. The firm reported a decrease of 4 thousand subscribers from the previous quarter. The company´s pay-TV revenue decreased by 1% to USD 76.42 million. This was attributed to lower advertising revenue which was partly mitigated by higher subscription revenue from both commercial and residential customers. The firm´s pay-TV average revenue per user (ARPU) increased by USD 0.80 to USD 41.83.

But the math doesn’t add up. S$95.6m / 532,000 subscribers = S$180 / 3 months = $60. It seems StarHub’s APRU is being understated by S$8 per month.

For SingTel’s financial year ending March 31st, 2013, they reported an 18.4% year over year growth in revenue from Mio TV, bringing in S$125m in revenue for the year.

During the year, SingTel strengthened its content suite with the addition of FOX International Channels and Disney channels, and lifted mio TV revenue by a strong 18% to S$125 million. Total mio TV customer base reached 404,000 as at end of March 2013, an increase of 9.8% or 36,000 from a year ago.

Digital TV News puts SingTel Mio’s financials as follows: mio-tv-arpu
In the case of SingTel Mio TV, you have an annual revenue of $125m divided by a customer subscriber base of 404,000, which equals S$309 revenue per user per annum, which divided by 12 months in a year, equals S$26.

Singtel MioTV’s $26 APRU is less than HALF of StarHub’s Pay TV ARPU of either $52 or $60, depending on who does the math. And SingTel MioTV’s annual revenue are approximately 1/3rd that of StarHub.

Here are the Per Annum APRU’s calculated in (GBP) British pound sterling:

SingTel = S$26 * 12 = S$312 = 155 GBP
StarHub = S$52 * 12 = S$624 = 310 GBP

Now for the math on Singapore Pay TV’s Penetration rate. There are 5.2 million residents in Singapore and an average of 3.5 people per household, which comes to 1,485,714 households. There are 404k Mio TV household subscribers and 532k StarHub household Subscribers, which comes to 936,000 total Pay TV subscriber households.

There are of course, a variety of other longtail Pay TV operators in Singapore, but then again, there are households that subscribe to both SingTel Mio and StarHub. So, for sake of simplicity, we will offset those two numbers, and calculate the Pay TV Take-Up rate in Singapore to be simply: 936,000 household subscribers divided by 1,485,714 households = 63%.

Here is how Singapore maps out compared to the rest of the world when it comes to Pay TV Penetration rates and annual APRU.

pay-tv-penetration

 

Share:

Leave a Reply