StarHub’s First Quarter Ahead but Mainly due to DARE+ Cost Slippage

StarHub’s first-quarter 2022 result was ahead of our estimates and full-year guidance with services revenue up 10.7% year on year, EBITDA down 11.1%, and net profit down 2.6%. StarHub’s full-year 2022 guidance implies around a 20%-22% decline in EBITDA so this result was ahead of that but some of the costs associated with the DARE+ program were not incurred in the first quarter. Management indicated these costs would likely be incurred this year and the intention is to get the cost part of the DARE+ program largely completed by mid-2023 so the company can start to reap the benefits.