Singapore telco firm StarHub has reported total revenue of SGD 590.8 million for 3QFY2022 ended September 30, up 14.2% y-o-y, as the telco booked higher sales across its major business segments, including sales of equipment. The revenue increased compared to SGD 517.2 million in 3Q2021.
However, earnings in the same period was down 32% y-o-y to SGD 27.4 million.
StarHub’s Chief Executive Nikhil Eapen said, “Entering into the last quarter of 2022, we remain focused on our DARE+ journey. Concurrently, we are seeing results from deeper integration and collaboration across the enlarged Group, having won joint tenders as we sharpen our competitive edge alongside JOS SG & MY and Strateq. Meanwhile, as we face challenging macro and market conditions, we continue to maintain a long-term view and continue to optimise our business strategies to secure our growth positioning.”
Eapen says the telco is pursuing bigger deals in the enterprise space and is building a strong order book so as to achieve better earnings visibility for the coming FY2023.
The telco attributes the earnings drop to heftier operating costs including wages, repairs and maintenance, as well as capex on its networks. On the other hand, it incurred lower financing costs and tax.
For the 9MFY2022, earnings was down 18.4% y-o-y to SGD 88.3 million, while revenue was up 10.6% y-o-y to SGD 1.65 billion.
For the whole of FY2022, StarHub is guiding for higher revenue growth of 15%, revised from 12%.
On the other hand, because of delays, it expects capex commitment guidance to be at 9% of total revenue, instead of 12% indicated earlier.
However, in the coming 4QFY2022, StarHub intends to recognise write-offs in "certain legacy assets".
Separately, StarHub announced that chairman Terry Clontz will be retiring on December 31. Olivier Lim, currently an independent director, will take over from January 1, 2023.