For 2023, StarHub reported higher revenue (+2% y-o-y) and underlying PATMI (+77% y-o-y), driven by broad-based growth across all service segments.
Overall margins are expected to improve in 2024 on the back of ongoing cost optimisation efforts as well as an expected tapering off in DARE+ investments in 2H24.
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Strong 4Q23 results.
StarHub (SGX:CC3) exceeded our expectations slightly, reporting higher 2023 overall revenue (+2.0% y-o-y) and PATMI (+140.4% y-o-y), accounting for 99% and 106% of our full-year forecasts respectively. Excluding one-offs in 2022, 2023 underlying PATMI would still have surged 76.5% y-o-y.
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In our view, the slight beat on our PATMI forecasts was likely due to better margins from ongoing DARE+ cost optimisation efforts. Note that about S$160m of DARE+ investments were incurred in 2023 with an expected S$80m expected to be incurred in 2024; this is then expected to taper off in 2H24.
For 4Q23, service revenue fell slightly (-1.5% y-o-y, +0.2% q-o-q), largely dragged by lower sales of equipment and entertainment revenue.
Higher dividend.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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