StarHub posts 3Q21 net profit rose 5 percent on boost from broadband, enterprise

StarHub retail outletStarHub retail outlet. Photo taken pre-Covid.

Singapore telco StarHub reported Wednesday its third quarter net profit rose 5.1 percent on-year to S$40.0 million, despite drops in mobile and entertainment revenue as broadband and enterprise posted higher contributions.

Net profit excluded the effect of JSS payouts, StarHub said. Including the JSS payouts, net profit fell 9.5 percent on-year to S$40.2 million, the telco said.

Total revenue for the July-to-September period grew 5.6 percent on-year to S$517.2 million, the telco said in a filing to SGX.

Mobile revenue for the quarter fell 0.6 percent on-year to S$133.3 million, while entertainment, which is service revenue from pay TV, posted revenue declined 4.6 percent on-year to S$45.0 million, StarHub said.

The mobile business is seeing early signs of recovery in roaming, StarHub said, adding the entertainment segment saw declines in Pay TV subscribers as linear sports broadcasts ceased around the region.

Broadband posted third quarter revenue increased 9.5 percent on-year to S$49.8 million while enterprise revenue grew 17.3 percent on-year to S$190.0 million, StarHub said.

StarHub said the broadband segment continued to benefit from cross-bundling efforts, and as remote-work arrangements for customers boosted demand for higher-tier 2Gbps plans and faster WiFi routers.

The enterprise business posted growth from cybersecurity and regional ICT services, and in managed services by supplying 5G, IoT and security services.

In its outlook, StarHub increased its guidance for the margin from service earnings before interest, tax, depreciation and amortisation (ebitda) to at least 26 percent from 24 percent to 26 percent previously. That was on cost cuts, postponing operating expenditure for IT transformation and on higher expected contributions from cybersecurity services, the telco said.

StarHub also lowered its expected capital expenditure commitment to 7 percent to 9 percent of total revenue, from 9 percent to 11 percent previously, citing transitioning IT-related capex to a cloud-based operating expenditure model, along with other capex delays.

Read StarHub’s third quarter business update.