StarHub predicts double-digit service growth

Singaporean operator StarHub forecasts a return to service revenue growth this year, after profits and sales were mostly flat in the second half of 2021 and investment fell.

In an earnings statement, the operator expected services revenue to rise by at least 10%, but noted that figure would be offset by lower entertainment sales due to lower subscriber numbers. on pay television and associated advertising revenues.

CEO Nikhil Eapen highlighted “strong financial results despite significant macroeconomic impacts” and Covid-19 (coronavirus).

Net profit in the second half of 2021 increased 1% year-on-year to SGD81.4 million ($60.4 million), with revenue flat at SGD1.1 billion, weakness in mobile and pay-TV having been offset by the rise in the broadband and enterprise segments.

Mobile phone revenues remained at SGD270.9 million due to lower prepaid revenues and equipment sales fell 9.2% to SGD237.1 million.

The number of the operator’s prepaid users fell 17% to 468,000, while postpaid rose 4.9% to 1.5 million, pushing the overall figure up 1.3%.

ARPU for postpaid and prepaid services decreased by 8% and 11.4%, to SGD 30 and SGD 10, respectively. Average data usage per customer increased by 15.3% to 12.8 GB.

Enterprise revenue increased 6.4% to SGD 372.6 million due to higher contributions from its cybersecurity services unit, and broadband sales increased 8.4% to reach SGD 98.9 million through improved ARPU as customers upgrade to higher tier data plans.

Full-year investments amounted to SGD 76.5 million, or 3.7% of turnover, nearly 50% below its forecast.

Capital expenditure for 2022 is expected to be 7-9% of revenue.

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