Page 58 - Annual Report 2014

(ii) Other operating expenses Year ended 31 December Overview

Staff costs 2014 2013 Incr/(Decr)
Operating leases $m
Marketing and promotions $m $m %
Allowance for doubtful receivables 275.0
Repair and maintenance 128.4 276.6 (1.6) (0.6) Strategy
Other expenses 156.2 129.1 (0.7) (0.5)
Subtotal 153.6 2.6 1.7 Performance
Depreciation and amortisation (net of asset grants) 15.9 0.4 2.5
Total 69.2 15.5 (4.9) (6.7)
92.2 74.1 6.1 7.3
Other operating expenses in FY14 increased 0.4% to 736.9 86.1 1.9 0.3
$1,008.1 million when compared to FY13. 271.2 735.0 1.7 0.6
1,008.1 269.5 3.6 0.4
Analysis of major variances in other operating expenses is 1,004.5
provided below:
Repair and maintenance
Staff costs Repair and maintenance decreased 6.7% to $69.2 million in FY14
Staff costs in FY14 was 0.6% lower at $275.0 million as the as the outstanding provisions in the balance sheet were deemed
Group was able to manage costs increases through various to be adequate as at 31 December 2014.
initiatives such as outsourcing, process re-engineering and job
enlargements for its more experienced staff. Other expenses Governance
Other expenses were $6.1 million or 7.3% higher at
1.3 PROFITABILITY $92.2 million in FY14. The increase was attributed to higher
net loss on exchange differences arising from the strengthening
Total revenue USD, stock obsolescence, license fees, outsourcing fees, but
Operating expenses partially mitigated by higher miscellaneous cost recoveries.
Other income
Profit from operations Year ended 31 December Financials
Finance income
Finance expenses 2014 2013^ Incr/(Decr)
Profit before taxation $m
Taxation $m $m %
Profit for the year 2,387.2
(1,957.1) 2,369.6 17.6 0.7
EBITDA (1,946.0) 11.1 0.6
Service revenue 46.6 (3.3) (6.7)
EBITDA as a % of service revenue 476.7 49.9 0.7
473.5 3.2 (29.0)
^ Restated 2.0 (0.8) 20.6
(22.6) 2.8 3.9 (0.3)
456.1 (18.8) (1.5) 9.8
(85.6) 457.5 7.6 (2.4)
370.5 (78.0) (9.1)
379.5

747.9 743.0 4.9 0.6
2,217.5 2,239.5 (22.0) (1.0)
0.5% pts
33.7% 33.2%

StarHub Ltd | Annual Report 2014 55