StarHub's net profit in the third quarter plummeted by 35.3% to 26.2 million yuan | Lianhe Zaobao

StarHub's net profit in the third quarter plummeted 35.3% year-on-year to SGD 26.2 million, primarily due to intense market competition, resulting in declines in both revenue and gross profit. StarHub announced its business report for the third quarter and the first nine months ending September 30 on Friday (November 14), showing a 4.3% year-on-year decline in total revenue to SGD 550.3 million, driven by a downturn in both consumer and enterprise businesses. Among them, consumer service revenue fell 7.5% year-on-year to SGD 239.2 million, mainly dragged down by a 10.1% drop in mobile business, specifically due to reduced revenues from roaming, international long-distance, value-added services, and excess data usage. Additionally, broadband and entertainment business revenues also declined by 4.4% and 4.3% year-on-year, respectively. Price Competition Remains Intense in Local Mobile and Broadband Sectors StarHub holds the second-largest market share in the local mobile market and the largest in the broadband market. Management pointed out that price competition in the local mobile and broadband sectors remains fierce. The group will continue to actively participate in market competition while strengthening its consumer value proposition and expanding products and services to meet user needs. In the third quarter, regional enterprise business revenue fell 7.8% year-on-year to SGD 145.7 million, mainly due to an 11.8% decline in managed services, attributed to a decrease in project revenue recognition. Further Reading StarHub to issue SGD 200 million subordinated perpetual securities with a coupon rate of 3.35% for the first seven years Intensifying market competition leads to a 41.7% drop in StarHub's net profit in the first half The group stated that its enterprise business will continue to prioritize investments in cybersecurity, artificial intelligence (AI), and cloud computing. In addition, the group is advancing regional integration as planned to accelerate market share growth. The integration momentum in Singapore and Malaysia is strong. In the first nine months of this year, the group achieved a net profit of 74.1 million yuan, a year-on-year decline of 39.6%, mainly due to a decrease in gross profit in some business segments, increased depreciation and amortization expenses, and some non-recurring expenditures, including a one-time forfeiture payment of 14.1 million yuan paid to the Infocomm Media Development Authority (IMDA) for the return of certain spectrum rights, as well as provisions related to the non-recurring DARE+ transformation plan utilized in the first half of 2024. Revenue for the first nine months was 1.6791 billion yuan, a slight year-on-year decrease of 0.1%. Among them, revenue from the regional enterprise business and cybersecurity business increased, while revenue from the consumer business declined. Management stated that the future strategic focus will be on consolidating and expanding market share in the consumer business, developing differentiated platforms in the enterprise business, and enhancing resilience in the cybersecurity field. At the same time, the group will strengthen cost control by phasing out old systems, optimizing networks, restructuring systems, and simplifying business processes