StarHub - UOB Kay Hian 2025-05-13: 1Q25 Soft Results In Line, Moving On From DARE+

StarHub: 1Q25 Soft Results In Line, Moving On From DARE+

Published:
StarHub (SGX:CC3) | SGinvestors.io
  • For 1Q25, StarHub (SGX:CC3) reported lower overall revenue (-0.9% y-o-y) and PATMI (-20.7% y-o-y), forming 22.3% and 21.5% of our full-year forecasts respectively and just in line with our expectations.
  • - Read this at SGinvestors.io -

Soft results in line.

  • 1Q25 service revenue (+1.1% y-o-y) was slightly higher, driven by strong momentum from the broadband segment and robust growth from the regional enterprise segment. However, 1Q25 service EBITDA (-5.7% y-o-y) was lower y-o-y, dragged by outsourcing and transformation-related costs such as DARE+ investments.

Muted margins.

  • StarHub's management noted that the DARE+ programme is set to finish by end-1H25. As a recap, 10% of the remaining DARE+ investments (S$20m-25m) is set to be expensed by end-1H25, which would help to support margins moving forward. However, with the upcoming S$282m spectrum payment set to be paid in full by end-2Q25 along with decommission costs in 4Q25, we expect overall margins to stay muted in 2025.

Mobile: Strong subscriber gains.

  • - Read this at SGinvestors.io -
  • Due to the ongoing stiff domestic pricing competition, blended mobile ARPU fell to S$21/month in 1Q25 (4Q24: S$22/month, 1Q24: S$23/month).
  • Average monthly churn rate increased slightly to 1.2% in 1Q25 (4Q24: 1.0%).

Broadband: Strong demand for higher-bandwidth plans.

  • 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/.



Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-05-13



Previous report by UOB:
2025-02-25 StarHub - Soft 2024 Results, DARE+ To End In 1H25.

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 Dividend Payout Dates & Corporate Actions,
StarHub News






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