StarHub's EPS Misses Expectations: A Closer Look at FY2024 Earnings

StarHub's full year 2024 earnings report has left investors with a mix of satisfaction and disappointment, as the company's earnings per share (EPS) missed analyst expectations. While the telco giant reported a 7.7% year-on-year (YoY) increase in net profit attributable to shareholders, reaching $161.7 million, the EPS figure fell short of market estimates. Let's delve into the key factors contributing to this earnings miss and explore the trends shaping StarHub's financial performance.



One of the primary factors behind StarHub's EPS miss was the one-off provision of $30.8 million relating to the DARE+ initiative. This provision contributed to higher cost of sales (+16% YoY) and increased operating expenses (+19.5% YoY), negatively impacting the company's earnings. Additionally, StarHub's EBITDA and PATMI for FY22 fell short of MIBG/consensus expectations, with EBITDA at $417 million (94% of FY22E estimates) and PATMI at $69.8 million (79% of FY22E estimates). These lower-than-expected earnings metrics contributed to the EPS miss.

Despite the EPS miss, StarHub's financial performance has shown steady growth over the past few years. The company's revenue has grown from $2.3 billion in 2021 to $2.45 billion in 2024, while net profit has increased from $140 million to $161.7 million over the same period. This growth can be attributed to the company's focus on expanding its market share, particularly in the Enterprise segment, and its strategic initiatives such as the Multi-Brand, Multi-Segment strategy and investments in Modern Digital Infrastructure.



In conclusion, StarHub's EPS miss in the full year 2024 earnings report can be attributed to the one-off provision for the DARE+ initiative and lower-than-expected EBITDA and PATMI. Despite this setback, the company's financial performance has shown steady growth, driven by its focus on expanding market share and strategic initiatives. As StarHub continues to navigate the competitive landscape and execute its growth strategies, investors should keep a close eye on the company's progress and its ability to meet and exceed market expectations in the future.