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Financial Analysis Starhub

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Financial Analysis Starhub

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  • March 2011
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Business Profile
SWOT Analysis
Strengths
Effective management team
Distinguished brand
Strong bargaining position with suppliers
Large customer base
Offers integrated services Weaknesses
Scaling operating costs
Market position relative to SingTel

Opportunities
New technologies
Changing customer preferences
Government initiatives (e.g. island-wide wi-fi access)
Changing network infrastructure (e.g. next-gen broadband network)Threats •Government regulations
Technological obsolescence
Changing customer preferences
Increasing competition (e.g. SingTel in cable TV market) •Growing market saturation
Economic recession that puts downward pressure on ARPU
Starhub Ltd is one of the stalwarts in the local telecommunications industry and a major player in the broader info-communications industry. Its competitors are MobileOne (M1) and Singapore Telecom (SingTel). The company officially arrived onto the telecommunications scene in early 2000; and was publicly listed in the Singapore stock exchange since October 2004.

Starhub's core business lies in the provision and operation of a broad range of info-communication services to both consumer and corporate customers such as mobile communications, subscription television, broadband connection, fixed network connection and sale of mobile-related equipment. Mobile communications is the primary contributor to Starhub's revenue stream.

Over the years Starhub has managed to deliver steady growth, by acquiring a larger customer base. Revenues from 2005 to 2008 have grown steadily year-on-year, at an average annual rate of 10.77%. Additionally, average revenue per user (ARPU) rates had also risen from $71 in 2005 to $75 in 2008. A lot of this success can be attributed to Starhub's innovative business strategy, management competence and distinctive branding. Starhub’s core strategy is centred on an innovation they developed in the local industry known as "hubbing". It...

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