Local telco StarHub CC3 has reported earnings of $40.4 million for the 3QFY2024 ended September, 11.1% higher y-o-y.
This came on the back of higher profit from operations, higher net non-operating income, and lower taxation.
That said, total revenue saw a 5.8% y-o-y decline to $575.2 million, due to lower sales revenue, which fell by 4.1% y-o-y to $493.7 million. This was due to timing of revenue recognition on projects mainly for the cybersecurity services segment, which was mitigated by 24.8% y-o-y revenue growth from enterprise managed services and 29.2% y-o-y growth in regional ICT services.
Meanwhile, consumer average revenue per user (ARPU) remained “resilient” q-o-q across most segments amid intense market conditions, says the group. Mobile postpaid ARPU remained flat at $30, while broadband ARPU was up at $35 from $34, due to higher subscription revenues.
Entertainment ARPU stood at $45, reflecting tactical promotions during the quarter, adds StarHub.
Comparing against the group’s full-year guidance for FY2024, 3QFY2024 service revenue decline of 4.1% was below the guided “at least 1% to 3%” y-o-y growth range. Service Ebitda margin at 22.6% was in line with the “approximately 22%” guidance.
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Capex commitment including investments for 3QFY2024 was 7.1%, lower than the guided range of between 11% and 13% of total revenue for the full year.
Nikhil Eapen, CEO of StarHUb, says: “We are aggressively competingng with multi-market segmentation in consumer whilst scaling modern digital infrastructure with hybrid multi-cloud, embedded with ubiquitous connectivity in enterprise to power out customer’s digital and cloud transformation.”
He adds “As we approach the end of 2024, we are focused on completing the build of our own hybrid multi-cloud and digital architecture with data at the core - across IT, network and customer engagement platforms.”
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As at Sept 30, StarHub’s free cash flow stands at $167.2 million, while leverage remains low with the group’s net debt to ebitda down at 1.25 times, compared to 1.36 times as at Dec 31, 2023.
Shares in StarHub closed 1 cent lower, or down 0.83%, at $1.19 on Nov 13.
