However, with co-funding of salaries by the government, StarHub stands to gain S$10m-12m in one-off benefits in 2Q20F in our estimation,’ he wrote in a note posted on. ‘While March was the worst-hit quarter in 1Q20, 2Q20F will be impacted by weaker mobile revenue in April and May 2020.
Mittal also noted that with new entrant Australian telco TPG Telecom beginning to charge its free customers now, existing players including StarHub might benefit – another factor in favour of the stock.įurthermore, while the second quarter of 2020 will be impacted more by Covid-10, Mittal predicts that this will be mostly offset by government support. Cybersecurity Service’s revenue rose sharply by 137% year-on-year to S$62.4 million, generating an operating profit of around S$5 million (versus a S$10.5 million loss in Q4 of 2019). He cited ‘Cybersecurity’s surprise operating profit of S$5 million’, which exceeded DBS’ expectations for a S$5-6 million loss, as a factor for him raising his price rating. Meanwhile, DBS analyst Sachin Mittal also raised his 12-month price target for StarHub shares to S$1.75 per share, up from S$1.40 per share previously – alongside an unchanged ‘buy’ rating. Analysts raised their StarHub share price targets post-earningsįollowing the earnings report, StarHub’s share price rose over 2.0% to S$1.51 a share. Here are three things we took away from StarHub’s latest financial update. Singapore’s second largest telecommunications provider by market capitalisation posted a total group revenue of S$506.2 million in the first quarter of 2020 – down from S$596.8 million in Q1 of 2019, and a net profit attributable to shareholders of S$40.2 million – down from S$49.3 million in Q1 of 2019.
Last Wednesday, StarHub revealed that quarterly revenue and net profit for the period ending 31 March 2020 fell 15.2% and 25.7% respectively year-on-year.