StarHub - CGS-CIMB Research 2023-11-29: Expecting Lower DARE+ Spending

• At StarHub’s Investor Day, the group announced the lowering of total DARE+ spend guidance to S$270m. It also does not expect more material delays.

Dare+ total investment guidance lowered by S$40m

• - Read this at SGinvestors.io -
• savings reaped from cost optimisation.
• StarHub also lowered its total expected DARE+ investment amount to S$270m (previously guided at S$310m), with ~S$50m/S$30m earmarked to be incurred in FY24F/25F.
• Management does not expect further material delays to DARE+ spending in FY24F as most initiatives are at their tail end.

Ensign flagged as a growth engine

• - Read this at SGinvestors.io -
• StarHub shared that ~20-30% of Ensign’s customer base used services across all four segments, with scope for further growth as Ensign ramps up business from the commercial sector.
• While Ensign’s EBIT contribution is currently relatively small (9% of FY22 EBIT), we believe the subsidiary is well positioned to capture longer-term tailwinds from growing cybersecurity spending across ASEAN.

2024F: A year of many moving parts

• Read more at SGinvestors.io.

Kenneth TAN CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-29 SGinvestors.io

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