StarHub Limited (SGX: CC3) announced its Q3 FY2024 results last week on 13 November 2024.
Financial Performance
For the quarter ended September 30, 2024, StarHub’s net profit increased 11% year-on-year from $36.4 million to S$40.4 million, while group revenue declined 4.1% year-on-year to S$493.7 million.
Starhub attributed the net profit improvement to its DARE+ transformation program, which focuses on cost efficiency and value-added services.
On its balance sheet, StarHub’s net debt to EBITDA remained at 1.9x.
While StarHub faced pressure from declining revenues in its mobile and entertainment segments, its broadband business stood out. The growing demand for high-speed internet contributed positively to the company’s performance.
5G Rollout Progress
StarHub made significant advancements in its 5G deployment during the quarter:
3G Shutdown: On November 1, 2024, StarHub officially discontinued its legacy 3G services, transitioning fully to next-generation connectivity.
Customer Support: To assist remaining 3G customers, the company introduced tailored offers and equipment upgrade programs to ease the transition to 5G.
5G Benefits: StarHub highlighted the advantages of 5G, including faster speeds, lower latency, and greater capacity, which promise improved experiences for both consumers and businesses.
Strategic Priorities
StarHub continues to align its efforts with three key priorities:
Innovation: The company is investing in advanced technologies to address evolving customer needs.
DARE+ Program: This initiative remains central to achieving cost savings and streamlining operations.
Customer Focus: StarHub aims to enhance customer experiences and strengthen relationships to drive loyalty.
Business Update and Challenges
Despite facing a competitive landscape and challenges in certain segments, StarHub’s strategic execution has kept it profitable.
Its transition to a 5G-powered future is unlocking new growth opportunities in the digital economy.
However, competition in the 5G space remains intense, requiring continuous investment in network infrastructure and new service development.
Outlook
StarHub’s shift to 5G positions it well for future growth.
Backed by a solid balance sheet, strategic vision, and a customer-centric approach, the company is equipped to navigate industry challenges.
While competition is fierce, StarHub’s proactive initiatives and innovative strategies should help it uncover new opportunities and deliver long-term value to shareholders.
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