TELCO StarHub : CC3 0% on Thursday (Aug 3) reported a net profit of S$76.7 million for the half-year ended Jun 30, up 25.8 per cent from S$60.9 million in the corresponding year-ago period.

The increase in net profit came from higher profit from operations and lower net finance costs, despite higher taxation. 

This translates to earnings per share of S$0.042, up 27.8 per cent from S$0.033 in H1 FY2023. 

Revenue for the period climbed by 4.5 per cent to S$1.11 billion, from S$1.06 billion.

It was lifted by higher contributions from service business segments, but offset by lower sales of equipment. 

Its mobile segment registered a 12.8 per cent year-on-year (yoy) increase to S$302.7 million in revenue; broadband had a 7.6 per cent growth to S$124.6 million; entertainment jumped 18.2 per cent to S$113.9 million; while enterprise business ticked up 1.8 per cent to S$396.9 million.  

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StarHub also declared an interim dividend of S$0.025 per share, payable on Aug 29.

The telco said that this is consistent with the group’s commitment to distribute a minimum of S$0.05 per share this financial year. 

In its outlook, the group noted that the differentiation and cross-bundling opportunities from its “infinity play” products allowed it to register yoy service revenue growth, despite intense market competition in the consumer segment. 

It also said that it will continue to explore merger and acquisition opportunities that will amplify its Dare+ objectives.

Dare+ is the programme it rolled out in 2021 that aims to harness 5G Internet of Things products and solutions and cloud connectivity to deliver sustainable revenue growth and reduce operating expenditure. 

StarHub will also focus on optimising its capital structure, exploring initiatives to enhance long-term total shareholder returns.

One example is the S$50 million share buyback programme it announced on Jun 26 to repurchase up to 3 per cent of StarHub’s issued share capital. 

However, the telco guided its year-on-year growth to be 3 per cent to 5 per cent, down from the 8 per cent to 10 per cent growth it had expected in February this year.

This came as the group saw “delays in project recognition” in cybersecurity services and regional ICT services. 

Shares of mainboard-listed StarHub ended flat at S$1.05 on Thursday, before the announcement.