StarHub (CC3) Q4 2024 earnings summary

Executive summary

• FY2024 net profit after tax attributable to shareholders rose 7.7% year-over-year to $161.7M, meeting or exceeding all guidance metrics.

• Service revenue grew 3.9% year-over-year to $2,020.5M, and total revenue increased 1.4% to $2,359.3M, led by broadband and enterprise segments.

• Service EBITDA and margins remained stable at 21.7%, with cost optimization and transformation investments.

• Market share increased across Consumer Mobile, Broadband, and Entertainment segments.

• Enterprise segment revenue surged 14%, driven by Managed Services, Cybersecurity, and Regional ICT Services.

Financial highlights

• Service EBITDA (excluding D'Crypt) increased 3.1% to $437.4M; margin at 21.7%.

• Free cash flow for FY2024 was $162.2M, with operating cash flow stable at $361M.

• Net debt to EBITDA improved to 1.29x as of 31 December 2024, below regional peer average.

• Dividend per share for FY2024 was 6.2 cents, exceeding the minimum policy.

• Capex commitment for FY2024 was 9.5% of total revenue, below the guided range.

Outlook and guidance

• FY2025 service revenue and EBITDA expected to remain stable, with focus on margin efficiencies and continued enterprise growth.

• Capex commitment for FY2025 projected at 9–11% of total revenue, with transformation investments concluding by 1H2025.

• Dividend target set at the higher of 6.0 cents per share or 80% of net profit (excluding one-off items).

• Aggressive scaling and M&A in ASEAN planned, with focus on organic/inorganic growth and customer-centric strategies.