- Despite strong customer additions, StarHub’s mobile segment continues to face ongoing headwinds amid stiff pricing competition. The enterprise segment is poised to drive growth in 2025.
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Soft results.
- For 2024, StarHub (SGX:CC3) reported higher overall revenue (+1.4% y-o-y) and PATMI (+7.7% y-o-y), forming 97% and 96% of our full-year forecasts respectively and just missing our expectations. 2024 core service revenue (+3.9% y-o-y) and EBITDA (+3.1% y-o-y) grew y-o-y, largely driven the enterprise segment but offset by the consumer segment which continues to face headwinds.
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- Similar to 2024, 4Q24 reported service revenue (+14.6% y-o-y), service EBITDA (+0.4% y-o-y) and PATMI (+2.4% y-o-y) increased y-o-y.
Mobile: Strong subscriber gains.
- StarHub's 4Q24 mobile revenue decreased 5.9% y-o-y, dragged by lower prepaid and postpaid revenue from ongoing stiff price competition.
- Both postpaid and prepaid ARPU fell y-o-y and q-o-q respectively. However, postpaid subscribers (+182,000 y-o-y, +94,000 q-o-q) surged in 4Q24, driven by strong take up of its giga! and Mobile Virtual Network Operators brands such as Eight Telecom. As a result, prepaid subscribers decreased (-12,000 y-o-y, -13,000 q-o-q) due to ongoing migration towards adjacent postpaid SIM-only value plans.
- Average monthly churn rate remained low at 1.0% in 4Q24 (3Q24: 1.0%).
Entertainment: Underperformance.
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