Singapore-based telecommunications company, StarHub, has experienced significant growth in its net profit for the year 2023. The company's net profit surged to 149.6 million Singapore dollars (US$111.4 million), more than doubling its 2022 figure of S$62.2 million. This impressive performance exceeded analysts' expectations for a net profit of S$139.7 million, according to a Factset poll.
The boost in revenue played a key role in driving StarHub's success, with a 2.0% increase to S$2.37 billion for the year. This growth was attributed to higher contributions from its mobile, broadband, entertainment, and enterprise businesses. Although slightly below Factset's expectation of S$2.39 billion, the company's revenue growth remains strong.
StarHub's bottom line thrived due to a 1.5% decrease in operating expenses and a substantial 72% decline in non-operating expenses. The absence of impairment losses recorded in the previous year further supported this improvement. Additionally, the divestment of its hardware-security subsidiary, D'Crypt, in the final quarter of 2023 contributed to the reduction in non-operating expenses during the second half of the year.
The company's commitment to providing value to shareholders is evident with a total dividend for the year amounting to 6.7 Singapore cents. This surpasses StarHub's guidance of at least 5.0 Singapore cents.
Looking ahead to 2024, StarHub anticipates a 1%-3% growth in service revenue, excluding any impact from the divestment of its D'Crypt subsidiary. The company also forecasts a service Ebitda margin of approximately 22%.
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