- StarHub (SGX:CC3)'s 2Q24 results were within expectations and management full-year guidance. 1H24 revenue and EBITDA were 47%/46% of our FY24 estimates, excluding D’Crypt (disposed in Feb24).
- StarHub's interim dividend rose 20% to 3 cents and within guidance of at least 6 cents full year.
- - Read this at SGinvestors.io -
- Competition from lower priced mobile MVNOs price plans is dragging down ARPU. Broadband is faced with new competition from SIMBA.
The Positives
Healthy cash flows.
- StarHub generated strong free cash flows of S$101mil in 1H24 (1H23:S$0mil). Operating cash flow almost doubled from S$98.4mil to S$194mil in 1H24.
- - Read this at SGinvestors.io -
The Negative
Decline in mobile service revenue.
- Mobile service revenue declined 4.1% y-o-y in 2Q24 to S$144.5mil. Revenue has already declined ( y-o-y basis) over the past two quarters.
- The weakness is due to falling postpaid ARPU despite the expected improvement in roaming revenues. Price competition from MVNOs is pulling down ARPUs.
Outlook
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-08-19
Read also Phillip's most recent report:
2024-11-15 StarHub - Spike In Mobile Subscribers.
Price targets by 3 other brokers at StarHub Target Prices.
Listing of research reports at StarHub Analyst Reports.
Relevant links:
StarHub Share Price History,
StarHub Announcements,
StarHub Dividends & Corporate Actions,
StarHub News Articles
