Starhub to gain from World Cup and rising incomes

StarHub is expected to record gain in revenues and profits for the year 2006 as it announced a hike in prices for subscribers to the Sports channels of Singapore's only Cable TV service for the 2006 German World Cup. In addition, the company has announced plans for an upcoming cable modem service with capability of offering download speeds of up to 100Mbps which is 3 times of present home offerings. Similar offerings have been priced at around $50/month in Hong Kong and South Korea, compared to Starhub's high tariffs of up to S$121.80/month for its 30Mbps service.

The high tariffs is still expected to hinder growth and penetration of subscribers. However with rising incomes, record low unemployment in Singapore, there is expected to be an increase in the number of subscribers for this year. With the relatively good dividend yield for this company and the fact that it has the widest services offered, StarHub looks set to bring cheer to investors.