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StarHub faces pressure from consumer segments, could benefit from consolidation: analysts

Company now appears to be more open to inorganic opportunities for growth, says UOBKH

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Yong Jun Yuan

Yong Jun Yuan

Published Fri, May 24, 2024 · 07:20 PM
    • Analysts believe that the local telecom industry is due for consolidation, which should help improve margins.
    • Analysts believe that the local telecom industry is due for consolidation, which should help improve margins. PHOTO: BT FILE

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    STARHUB posted a decent first-quarter net profit increase, but analysts have flagged that the company’s consumer business continues to face intense pressure, especially in the area of data roaming.

    The telco’s net profit grew 8.1 per cent to S$40.1 million for the quarter ended Mar 31, 2024, while revenue dipped 0.1 per cent to S$545.4 million.

    UOB Kay Hian (UOBKH) analyst Llelleythan Tan noted that revenue from the company’s consumer segments – comprising mobile, broadband and entertainment – declined across the board.

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