StarHub reports 2021 net profit slipped 6 percent

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

StarHub reported Friday its 2021 net profit slipped 5.5 percent on-year to S$149.3 million amid lower government support payments and higher finance costs.

Excluding Jobs Support Scheme (JSS) payouts, StarHub said its net profit was S$148.3 million for the year, up 17 percent on-year; JSS in 2021 was S$18.3 million, compared with S$34 million in 2020, the telco said.

Total revenue for the year increased 0.7 percent on-year to S$2.04 billion, the telco said in a filing to SGX.

Other income fell 65.7 percent on-year to S$14.2 million, mainly on lower JSS payouts and lower recovery of tunnel fees from TPG, while finance expense increased 20.3 percent on-year to S$49.1 million on higher borrowings and on liabilities associated with the consolidation of Strateq, the filing said. 

Performance was supported by a 10.4 percent on-year increase in broadband revenue for the year, strong quarter-on-quarter growth in postpaid mobile revenue and a turnaround in the entertainment segment on the migration from linear Pay TV to hybrid TV+ and OTT platforms, StarHub said. 

StarHub proposed a final dividend of 3.9 Singapore cents, bringing the full-year distribution to 6.4 Singapore cents. That compared with 2020’s final dividend of 2.5 Singapore cents.

Outlook

For 2022, StarHub guided that it expected service revenue to increase at least 10 percent, with higher revenue across most segments, and maiden contributions from the acquisitions of JOS Singapore and Malaysia, and from MyRepublic Broadband.

For 2023, StarHub guided for service revenue to rise 5 percent to 10 percent on-year on early outcomes from its DARE+ initiatives, the filing said.

The company said it was committed to distributing the minimum of 5 Singapore cents a share as a dividend for 2022 and 2023. 

Read more details of StarHub’s results.