StarHub CC3 has reported earnings of $37.5 million for the 1QFY2023 ended March 31, 26% higher y-o-y.
The earnings growth is mainly due to the higher profit from operations, which came from improvements across all segments, says the telco in its earnings release. The higher earnings were also due to lower net finance expenses offset by higher tax expenses.
Total revenue also grew by 8.7% y-o-y to $557.4 million. This was attributable to the 11.0% y-o-y growth in service revenue of $461.6 million and offset by lower sales of equipment. The higher service revenue was lifted by growths across StarHub’s mobile, broadband, entertainment and enterprise segments.
Segmentally, mobile revenue grew by 13.5% y-o-y to $152.1 million, while broadband grew by 20.4% y-o-y to $62.0 million. Entertainment increased by 21.0% y-o-y to $57.1 million while enterprise was up by 3.9% y-o-y to $190.4 million.
Excluding contributions from MyRepublic Broadband, StarHub’s total revenue and service revenue grew by 5.2% and 6.8% y-o-y respectively.
During the period, service ebitda rose by 2.7% y-o-y to $103.4 million in tandem with the higher revenue and service margin while service ebitda margin fell by 1.8 percentage points y-o-y to 22.4% on the back of higher operating expenses (opex) and lower other income.
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“Our 1QFY2023 performance marks a strong start to the year, running ahead of our FY2023 guidance," says Nikhil Eapen, StarHub’s CEO.
"We continue to deliver new digital and cloud-enabled products and platforms, strengthening our Infinity Play and All-in-One App proposition for consumers; as well as new enterprise solutions converging the 3C’s to deliver smart, safe and sustainable solutions for Singapore and beyond,” he says.
“We are on track with our DARE+ transformation, reiterating our operational and financial goals and intend to accelerate into FY2023 to harvest DARE+ benefits from FY2024 and onward,” adds Eapen.
Shares in StarHub closed flat at $1.01 on May 11.
