HOOQ Digital, a video streaming service majority owned by Singapore Telecommunications Ltd, said it was filing for liquidation as it had not been able to grow sufficiently to provide sustainable returns nor cover escalating costs.
HOOQ was started as a joint venture in 2015 between Singtel, Sony Pictures Television and Warner Bros Entertainment. But it has failed to make major gains as larger rivals such as Netflix Inc expanded in the region.
The liquidation is not expected to have any material impact on the net tangible assets or earnings per share of Singtel, the telecom operator said in a filing to the stock exchange. Singtel has an indirect 76.5% effective stake in HOOQ.
HOOQ is part of Singtel’s group digital life segment, which includes newer businesses like digital marketing that the company has been trying to grow as part of its efforts to expand outside traditional telecom services.
Via Reuters. Reporting by Aradhana Aravindan in Singapore. Editing by Himani Sarkar.