Singapore, 8 November 2023 – StarHub reported today net profit attributable to shareholders (“NPAT”) of $37.3 million for the three-month period ended 30 September (“3Q”) 2023, a 36.5% year-on-year (“YoY”) increase from $27.4 million in the equivalent period a year ago. The improved bottom line was in tandem with higher Service Revenue of $526.0 million in 3Q2023 compared to $482.9 million in 3Q2022, as a result of increased contributions across most business segments that lifted profit from operations in 3Q2023.
Commenting on the results, StarHub’s Chief Executive, Nikhil Eapen, said, “We have maintained our momentum into the third quarter, delivering solid growth YoY. In comparison to our updated guidance, 9M2023 outperformed guidance on Service Revenue and Capex and was in line on Service EBITDA Margin. We continue to make Opex and Capex investments towards achieving our DARE+ programme. We reiterate our DARE+ outcomes and our ambition to transcend beyond telco with first-of-its-kind platforms, to enhance long-term total shareholder returns and value for our society and all stakeholders.”
Mobile revenue grew 7.2% YoY to $153.3 million in 3Q2023, lifted mainly by higher Postpaid revenue with improved Postpaid ARPU of $32. Entertainment ARPU rose to $45 in 3Q2023 compared to $41 in 3Q2022, contributing to a 2.4% YoY increase in Entertainment revenue of $56.7 million. Despite intensifying market competition that lowered Broadband revenue by 1.9% to $62.4 million, Broadband ARPU remained stable YoY at $34. Enterprise delivered 14.8% YoY growth in revenue to $253.6 million in 3Q2023, lifted mainly by a 45.1% increase in Cybersecurity revenue to $115.1 million.
StarHub also announced today that it will retain its Ensign Assigned Rights for two additional years until 4 October 2025, maintaining the Group’s effective interest at 55.73%. A mechanism has also been put in place for StarHub to potentially retain the Assigned Rights beyond the 2025 deadline through a further extension to be negotiated with Temasek, or a transfer of the Assigned Rights Shares to StarHub for a consideration to be determined.
“Cybersecurity remains core to StarHub and our DARE+ evolution to converge Cloud, Cybersecurity and Connectivity; to drive secure multi-cloud solutions and enable Smart City use cases for our Enterprise customers. We will continue to work closely with our partners and Temasek to accelerate growth with Ensign, and to create value for all stakeholders,” Nikhil added.
For the nine-month period ended 30 September (“9M”) 2023, StarHub’s Service Revenue rose 8.2% to $1.46 billion compared to $1.35 billion in the equivalent period a year ago. Service EBITDA margin for 9M2023 was 21.8%, mainly due to higher costs contributed by the growing Cybersecurity Services segment.
Compared to StarHub’s updated FY2023 guidance (as at 3 August 2023), the 9M2023 Service Revenue YoY growth of 8.2% has exceeded the guided “3% to 5%” range. The 9M2023 Service EBITDA margin of 21.8% was in line with the guided “approximately 22%”, as StarHub continues efforts to realise operational efficiencies from DARE+ initiatives to transform its business models.
Including investments[1], StarHub’s Capex Commitment as a percentage of Total Revenue was 7%, which is lower than the 11% to 13% guided for the full year, as the Group continues to improve cost efficiencies through infrastructure and capacity optimisation. In line with the usual seasonality, StarHub expects to book higher Capex in the fourth quarter. StarHub maintains its guidance for FY2023 provided on 3 August 2023.
[1] Including 5G Capex and spectrum right, as well as investments relating to DARE+ and IT Transformation
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For more details on the Group’s performance, please visit http://ir.starhub.com/. Other materials available on StarHub’s investor relations website include the investor presentation, results announcement, as well as the audio webcast archive to be made available after 8 November 2023.
About StarHub
StarHub is a leading homegrown Singapore company that delivers world-class communications, entertainment and digital services. With our extensive fibre and wireless infrastructure and global partnerships, we bring to people, homes and enterprises quality mobile and fixed services, a broad suite of premium content, and a diverse range of communication solutions. We develop and deliver to corporate and government clients solutions incorporating artificial intelligence, cybersecurity, data analytics, Internet of Things and robotics. We are committed to conducting our business in a sustainable and environmentally responsible manner. Listed on the Singapore Exchange mainboard, StarHub is a component stock of the SGX iEdge SG ESG Leaders and Transparency Indices and included in ESG-focused FTSE4Good Index Series. StarHub is ranked as the world’s most sustainable Wireless Telecommunications Service Provider and Singapore’s most sustainable Telco, in Corporate Knights Global 100. Visit www.starhub.com for more information.
