StarHub - Phillip Securities 2025-05-13: Still In Hyper-Competition Mode

• StarHub's results were below expectations. 1Q25 revenue and EBITDA were 23% and 22%, respectively, of our FY25e forecast.
• Mobile ARPU continues to suffer from intense competition. On a q-o-q basis, StarHub's ARPU slipped 4.5%. Mobile price competition is across categories, including roaming and MVNO. The economics of the business will only worsen with the additional capacity and S$282mil payment for the 700MHz spectrum due 1 July.
• - Read this at SGinvestors.io -

The Positive

Rising price plans in broadband.

• - Read this at SGinvestors.io -

The Negative

Mobile ARPU continues to deteriorate.

• Mobile revenue is on its 5th consecutive quarter of decline in 1Q25. Dragging down revenue was the 8.7% y-o-y fall in ARPU. Value price plans are collapsing, led by the MVNOs. Free roaming data plans are also denting this highly lucrative segment.
• StarHub premium customers are less impacted because such customers have bundled products with multiple plans and operate as a household.

Outlook

• Read more at SGinvestors.io.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Previous report by Phillip:
2025-02-24 StarHub - Mobile Competition Clouds Outlook.

Price targets by 4 other brokers at StarHub Target Prices.

Listing of research reports at StarHub Analyst Reports.

Relevant links:
StarHub Share Price History,
StarHub Announcements,
StarHub Dividend Payout Dates & Corporate Actions,
StarHub News