StarHub - RHB Invest 2023-08-04: Recalibrated Spending

• StarHub (SGX:CC3)’s 1H23 results were broadly in line. Notable highlights include:
  • Project delays for the cybersecurity business, and
  • streamlining of the regional ICT business (JOS), which has manifested in the lower revenue growth guidance for FY23.
• - Read this at SGinvestors.io -

Operating expenses set to ramp up in 2H23.

• StarHub's 1H23 core earnings were up 26% y-o-y on stronger service revenue and steady EBITDA. While this made up 62% of our forecast (consensus: 69%), we expect a ramp-up in StarHub's capex and opex in 2H23 from its DARE+ transformation programme.

Service revenue up 8% in 1H23 with growth across all segments.

• - Read this at SGinvestors.io -
• As part of the ongoing integration of its regional businesses, StarHub is adjusting the pipeline of projects – it is removing legacy low yielding segments and pushing new service propositions which would take time to convert to sales.
• Entertainment segment growth was flattish q-o-q but rose y-o-y with incremental ARPU uplift (from the Premier League) offset by subs deletions.

Recalibrated spending; guidance fine-tuned.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-08-04 SGinvestors.io

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