StarHub : Business Review ( 881 KB)

Business Highlights

Mobile 29.9%

Broadband 12.8%

Entertainment 11.5%

Network Solutions 19.4%

Cybersecurity Services 15.9%

Regional ICT Services 10.5%

17.2%

MOBILE REVENUE

FY20211 $525M

FY2022 $564M

BROADBAND REVENUE

FY20211 $194M

FY2022 $242M

ENTERTAINMENT REVENUE

FY20211 $186M

FY2022 $216M

ENTERPRISE REVENUE

$362M $269M $76M

FY2021 $706M

FY2022

$366M

$301M$199M

$866M

$1.61B

$170M

6.6%

$1.72B

FY2021

FY2022

Service Revenue

JOS SG, JOS MY & MyRepublic Broadband

4Q2021

1Q2022

2Q2022

3Q2022

4Q2022

4Q2021

1Q2022

2Q2022

3Q2022

4Q2022

1

Comparatives have been restated to take into account the reclassification of Entertainment OTT from Mobile and Broadband to Entertainment.

Business Review Consumer

INFINITY PLAY:

EMBEDDED DIGITAL LIFESTYLE

We made strong progress in the first year of our 5-year DARE+ roadmap, establishing a strong foundation for Infinity Play to meet the evolving needs of today's digital customer. This has made it possible for us to realise our strategy of entrenching StarHub in all facets of our customers' digital lives, enabling us to ride on emerging consumer trends with strong tailwinds.

Our strategy to proactively evolve ahead of market trends has allowed us to engage an increasingly sophisticated customer base. The investments we continue to make have strengthened our infrastructure and service offering, allowing us to benefit from wider consumer industry trends such as the continuous adoption of digital services, and the increased demand for digital lifestyle and connectivity. We are well-placed to take on the hyper-competitive Mobile and Broadband markets, and meet the paradigm shift in Entertainment where viewing habits have transitioned to OTT content.

We strengthened our Infinity Play proposition, having introduced three new consumer verticals: GameHub+, ProtectHub+ and LifeHub+, to complement our traditional verticals of Mobile, Broadband, and Entertainment. With consumers watchful on spending in an environment of rising inflation, our six consumer verticals present StarHub customers with greater flexibility and value through cross-bundling across verticals. This sets the foundation for us to further extend our reach in Singapore, which currently stands at 1 in 2 households signed on as a StarHub customer.

We have also observed meaningful traction in elevated customer lifetime value, demonstrating the positive progress that we have made with Infinity Play in just the first year of our DARE+ execution. On average, each customer is subscribed to 1.5 services, reflecting early success in driving consumption amongst our customers. Furthermore, more than 60% of our customer base have been with us for more than five years, and almost all of whom enjoy multiple services with StarHub. We continue to be recognised for setting new industry standards with our products, customer service, and customer experience.

Mobile

StarHub remains well-positioned in the hyper-competitive Mobile market. During the year, we were ranked first, ahead of our competitors for Mobile Customer Satisfaction1, and retained a strong second position in Singapore's Mobile market (by service revenue). Most notably, StarHub was the winner of download speed experience and games experience awards2, validating our ability to deliver unsurpassed quality and experience in Asia's nascent but fast-growing gaming industry.

Mobile ARPUs improved over the year despite continued price erosion across the industry. In addition to the recovery of roaming revenue as borders reopened gradually, our ability to clearly differentiate the value of our products and services through cross-bundling and Infinity Play allowed us to drive greater consumption in this area. The uptick in our ARPUs was underpinned by a 81,000 YoY growth in subscribers, which was contributed by a 46%3 YoY expansion of our giga! subscriber base. Furthermore, with borders reopened and revenge-travel in play, we also saw increased contribution from roaming as well as increased VAS revenues.

5G adoption continued to be strong as we recorded approximately 51% YoY3 growth in 5G mobile subscribers. This also contributed to the improvement in revenues as 5G ARPUs remained 1.4x3 higher compared to 4G ARPUs. The average data usage per customer also increased to 13.7GB in FY2022, 7% higher compared to 12.8GB in FY2021.

Looking ahead, we will look to drive higher customer engagement and satisfaction through expansion of our 5G network which stood at more than 95% nationwide coverage at the end of FY2022. To enhance 5G adoption, we will optimise network efficiencies via our joint venture company, Antina, and enhance 5G indoor coverage in-line with demand trends.

• 1 Source: CSISG 2022

• 2 Source: Opensignal Mobile Experience Report, November 2022

• 3 As disclosed during Investor Day in December 2022.

• 4 By Service Revenue market share, based on internal estimates.

Broadband

Marketing our plethora of value-added Infinity Play products and services to this segment through cross bundling, we were able to increase Broadband ARPUs during the year and realise a greater take-up of higher-tier 2Gbps plans as subscribers increased approximately 170% YoY3. Subscriber churn remained stable in FY2022 at 0.6% as compared with 0.8% in FY2021. As a result, StarHub was the leading player in terms of Broadband revenue market share in FY20224.

The acquisition of MyRepublic Broadband completed in FY2022 enhanced StarHub's leadership and product offering in the Broadband segment. We will leverage our extended reach to encourage take-up of higher bandwidth broadband products to further drive growth for the segment. We will also capitalise our strengthened market leadership and scale in the Broadband segment to deploy smart pricing strategies and serve growing customer demand for premium higher bandwidth services.

Cognisant of Broadband customers' need for higher speed, lower network latency and seamless connectivity, we continue to deliver innovative products based on leading-edge technologies to ensure an unparalleled home broadband experience for StarHub customers. To this end, we introduced StarHub Smart WiFi Pro, which affords customers ultra-strong coverage and next-generation WiFi speed, which is more than four times the speed of the WiFi 5 standard. With the ability to connect up to 40 devices with no lag or interruption, the ultra-low latency of the network offers users the best gaming experience at home.

Subsequent to the year-end, StarHub broke new grounds once again, being the first telco in Singapore to trial nationwide 10G-XGS-PON (Gigabit-capable Symmetric Passive Optical Network) broadband. This new technology promises unprecedented speeds in Singapore, up to 10 times the speed and bandwidth of standard broadband services, future-proofing customers' needs for higher bandwidth to power next-generation devices and data-intensive applications and features.

Looking ahead, Broadband will continue to be a key pillar of growth. To drive the Group's performance in this segment, we will focus on enhancing customer engagement and satisfaction by introducing premium devices as well as complementary devices to enhance home broadband performance. This will address a broader trend of smart homes with multitude of connected devices which has given rise to a critical need for reliable home broadband experience.

Business Review Consumer

Entertainment

Our focused efforts on delivering the best Entertainment and content delivery experience to customers continues to position StarHub as a leading provider of quality content. We afford customers greater freedom of choice with a wide range of new and in-demand content delivered through 11 coveted OTT brands.

In March 2022, we were the first Entertainment service provider in Southeast Asia to offer customers access to

Curiosity Stream and its collection of thousands of original and curated documentaries appealing to nature lovers, history buffs and tech enthusiasts. In the following month, we rolled out Viu, an OTT brand with an aggregate of over 12,000 hours of premium Korean, Chinese, Thai and Hong Kong drama content.

During the year, we launched TV+ Pro to deliver our suite of streaming services, apps and TV programmes. With an integrated soundbar designed to captivate audiences with the most immersive TV experience delivered in Dolby Atmos® and Dolby Vision®, with audio tuning by Bang & Olufsen, customers are able to enjoy rich and authentic sounds matched with stunning images that effortlessly convert living spaces into enchanting home cinemas. Supporting Ultra HD content (4K) and Chromecast built-in, TV+ Pro includes access to enhanced

• 5 Source: HWM + HardwareZone.com Tech Awards 2022.

• 6 Source: CSISG 2022.

multi-tasking features through Google Assistant, providing customers with the best of entertainment and flexibility.

TV+ Pro is testament to the way we plan and develop our products and services - by putting our customers front and center.

We entered into an exclusive agreement with the Premier League in 2022 to deliver six seasons of Premier League to customers through Premier+. From the onset, we wanted to deliver an unprecedented experience through an immersive, feature-rich and multi-platform OTT service - for the first time in Singapore or anywhere else in the world. This includes live match statistics, key highlights, interactive timeline and time-shift features, full match replays, amongst other features that will elevate the viewing experience for football fans. We see Premier League as a powerful acquisition tool that is core to our Infinity Play vision. Having Premier League on an OTT platform also meant that we will be able extend our reach beyond our current pool of customers, allowing users to stream Premier League content flexibly anytime, anywhere, and across any network, with a highly-customised experience to suit varying preferences.

Riding on the success of Premier+, we have solidified our market positioning as the Home of Sports, boasting the widest range of sports content that was expanded further in 2H2022. This included ICC Men's T20 World Cup Australia 2022, which wasfeatured on Hub Sports 4, our new dedicated cricket channel; and all 64 matches of the FIFA World Cup Qatar 2022, which were streamed 'live' or on-demand on any device.

The strategy and initiatives we have employed for Entertainment have sharpened our niche, which has also contributed to higher advertising revenue. We have not only emerged as the market leader amongst

Pay TV operators in Singapore in FY2022 (by service revenue and subscriber market share), this is also reflected in improved ARPUs achieved during the year and a 7.6% YoY growth in FY2022 total Entertainment subscribers.

As a result of our efforts, StarHub was recognised for delivering market leading Entertainment experiences in FY2022. We were named Best Pay TV Service Provider (Singapore)5 and ranked first in the industry for delivering TV customer satisfaction6.

Over the next 12 months, we will continue to bolster the breadth and depth of content on our platform, and focus on driving innovation for content delivery.

Buoyed by our progress, we continue to drive customer satisfaction and stickiness by enhancing our networks and infrastructure to deliver unsurpassed streaming experiences. We will focus on delivering progressive roll-out for first-in-market Premier League digital features and continue driving hybrid TV+ adoption.