StarHub Earnings: In Line but Mobile Revenue Decline Is Concerning

StarHub’s first-quarter result was broadly in line with our expectations. Still, the revenue mix was a little concerning, with higher-margin telecom network service revenue of mobile, entertainment, and broadband declining, while the likely lower-margin enterprise revenue increased. Excluding the now-sold D’Crypt, service revenue increased by 1.9% year on year, EBITDA declined by 1.4%, and net profit increased by 8.1%. Near-term profitability is partially a function of the level of Dare+ expenses.