StarHub’s Second Quarter Ahead, but 5G, DARE+, and Premier League Costs to Hit Second Half

StarHub’s second-quarter 2022 result was ahead of our estimates and full-year guidance with services revenue up 12.6% year on year, EBITDA down 2%, and net profit down 16.6%. However, StarHub’s full-year 2022 guidance was unchanged and implies around 20%-22% decline in EBITDA with management citing costs associated with the DARE+ program, accelerated 5G rollout costs and costs associated with the Premier League all to be incurred in the second half. Revenue growth was helped with the JOS acquisition consolidated in the first quarter and the MyRepublic acquisition consolidated in the second quarter, but underlying core mobile revenue growth of 5.5% was a highlight.