StarHub FY21 net profits down 5.5% amid ‘significant macroeconomic and COVID-19 impacts’

18 Feb 2022

Singapore’s StarHub reported that net income attributable to shareholders fell 5.5% to SGD149.3 million (USD111.1 million) in FY 2021, down from SGD157.9 million in the prior year, although revenues were up 0.7% at SGD2.043 billion (FY20: SGD2.029 billion). The company noted that falling income was in part the result of a reduction in government subsidies for salaries to aid all Singapore-based enterprises over the pandemic. StarHub was keen to stress that without the ‘Job Support Scheme’ subsidy it would have seen earnings growth of 17% year-on-year. In a release, the company also noted that its solid revenues were underpinned by strong performances for its broadband and enterprise businesses, offset by lower turnover from mobile, entertainment and equipment sales.

In terms of other key metrics, StarHub said operating profit from operations was up marginally at SGD231.8 million (FY20: SGD231.3 million), pre-tax profits fell 0.2% on an annualised basis to SGD190.2 million, and EBITDA fell 5.0% to SGD510.9 million from SGD537.8 million previously. Its release also noted: ‘CAPEX commitment was 3.7% of total revenues in FY 2021, outperforming guidance of “between 7% and 9%” as updated in August 2021 and “between 9% and 11%” offered in February 2021. As a result, StarHub achieved FY 2021 free cash flow of SGD484.6 million, a 25.0% y-o-y increase.’

Singapore, StarHub