StarHub (CC3) H2 2022 earnings summary

Executive summary

• FY2022 Service Revenue reached $1.9B, up 17.2% YoY, exceeding revised guidance of 12%-15%; growth excluding acquisitions was 6.6%.

• FY2022 net profit attributable to shareholders was $62.2M and free cash flow was $222.3M; FY2022 dividends totaled 5.0 cents per share.

Financial highlights

• Total Revenue was $2.3B, up 13.9% YoY; Service Revenue was $1.9B, up 17.2% YoY.

• Net profit attributable to shareholders fell 58.3% to $62.2M; adjusted for DARE+ provisions, non-operating items and related tax effects, NPAT was $114.2M, down 30.7% YoY.

• Service EBITDA was $379.4M; margin was 20.1%, or 21.7% excluding non-recurring DARE+ provisions.

Outlook and guidance

• FY2023 Service Revenue guidance is 8%-10% YoY growth, supported by Entertainment, Cybersecurity, Regional ICT Services and new DARE+ initiatives.

• FY2023 Service EBITDA margin is expected at ~20%; Capex Commitment is 13%-15% of Total Revenue, including investments, while BAU Capex remains 5%-7%.

• FY2023 dividend distribution is expected to be at least 5.0 cents per ordinary share.