Investor Relations

Engaging Our Shareholders

A well-run Company overseen by a Board committed to corporate governance excellence and a strong management team that has rich experience in execution.

INTERVIEW WITH

Jeannie Ong

CSPO

Q:

Why should StarHub be part of any investors’ portfolio?

A:

We are a well-run Company overseen by a Board that is committed to corporate governance excellence; a strong management team that has rich experience in execution, backed by the team of talented StarHubbers who are passionate about our cause. We are the only local telco that pays dividends quarterly since 2005 and our dividend yield is one of the highest in the local market.

In addition, we have a strong balance sheet and we are able and willing to invest so that we can capture new growth areas. As of January 2018, we have made two major acquisitions (ASTL and D’Crypt), adding new capabilities that complements our enterprise offerings. This makes us the only real contender to the incumbent in the enterprise market. We made our name capturing and holding our fair share of the mobile, TV and broadband markets. Coupled with our own nationwide fibre backbone and undersea submarine cable landing stations, we are ready to repeat the same feat in the enterprise market.

Lastly, we are focused on sustainability. We constantly measure and assess the impact of the landscape and stakeholders on the Company and vice versa. As our customers benefit from our better-quality services, we will be in a better position to deliver a long-term positive impact on our wider community with our focus on five key areas; the environment, supporting youth and social inclusion, partnering for innovation, improving customer experience and supply chain integrity.

Q:

What is your approach in engaging the investment community?

A:

We have put in place a comprehensive and proactive IR engagement programme. They include non-deal roadshows, investor conferences and one-on-one meetings held locally, regionally as well as in Europe and USA. Over the past year, we have chalked up more than 150 engagements with the investment community.

We also organise an ‘Investor Day’ whenever we have new technologies and strategies to share. For the year, we partnered with two foreign broking houses to organise ‘StarHub Smart Nation’ tours at ‘Hubtricity’. We held one for the sell-side analysts too.

The investment community has largely seen us through ‘consumer lens’ and so there is a need to remind and educate them that the Enterprise business is our next growth engine. The tours allowed us to showcase our capabilities in cyber security, data analytics, connected buildings and smart retail services. It also provided the opportunity to introduce Dr Chong Yoke Sin, our Chief of Enterprise Business Group to the investors and hear her enterprise strategies. Lastly, we got to display Hubtricity. Hubtricity is our recently launched 58,000 square feet innovation centre and converged operations cockpit. The centre demonstrates our extensive connectivity and deep competency in data analytics and cyber security. It is also a co-working space for partners and start-up companies to create solutions for a Smart Nation.

We always tell our investment story in a forthcoming manner, engaging investors through good and bad times to ensure consistency. We also ensure that we are always responsive and pre-emptive in our approach. Besides that, we are attuned to changing ways in how we are seen by the wider community.

For example, sustainability is no longer a ‘nice-to-have’ consideration. We are early in recognising this as we are now in our seventh annual sustainability report and have been part of Corporate Knights’ Global 100 ranking of the world’s 100 most sustainable companies for five consecutive years.

Over the past year, we have redefined our approach towards sustainability by looking at the supply chain management as we want to be mindful of the effect we have on our environment, community, partners, customers and employees.

Q:

What are the top three questions usually asked by investors?

A:

The top two questions are on the competitive and structural challenges, and the last is on our dividend payment policy.

Most sell-side analysts are bearish on the Singapore telco sector because of a fourth mobile entrant and the possible disruptions it may cause. But what they may have overlooked are the practical challenges that the new entrant is facing in rolling out their network in two countries simultaneously. Furthermore, we expect more MVNOs to come into play in 2018 and compete directly with the fourth entrant.

It is no secret that TV customers have changed the way that they are consuming content. Most are using OTT apps or visiting non-sanctioned websites to view content; from sports to movies to dramas. Offering StarHub Go (OTT service) and the use of analytics to understand which content is valuable, are ways that we are managing the business. We are also working with content partners on various forums to protect their intellectual property rights.

Since 2005, the Company has been paying quarterly dividends based on the principle that the Board believes in returning cash to shareholders as soon as practical. As the info-communications industry tends to produce lumpy quarterly earnings and to provide certainty to investors, it makes sense for us to announce an absolute dividend payout amount at the beginning of the year rather than a payout ratio based on earnings.

To this end, the Board takes a forward three-year view of our earnings, free cash flow, growth prospects, investment needs and an optimal balance sheets. Our preference is to make sustainable dividend payments. The Board has recommended to pay four cents per quarter per ordinary share in FY2018.

Our Investor Calendar FY2017

1Q17
  • FY2016 results

Singapore

  • Investor Roadshows
  • HSBC ASEAN Conference
  • Maybank Kim Eng Invest ASEAN
  • Deutsche Bank Smart Nation Day

Bangkok

  • CLSA ASEAN Forum

Hong Kong

  • Credit Suisse Asian Investment Conference
2Q17
  • 1Q17 Results

Singapore

  • Investor Roadshows
  • dbAccess Asia Conference
  • StarHub Smart Nation Tour for Deutsche Bank
  • Citi ASEAN C-Suite Conference
3Q17
  • 1H2017 Results

Singapore

  • StarHub Smart Nation Tour for HSBC
  • Investor Roadshows
  • StarHub Smart Nation Tour for Sell-side Analysts

Kuala Lumpur

  • SGX-Maybank Kim Eng Conference

Hong Kong

  • CLSA Investors’ Forum
4Q17
  • 3Q17 Results

London

  • SGX-UBS Singapore Corporate Day

Singapore

  • UOB Kay Hian Asian Gems Conference
  • Investor Roadshows
  • Morgan Stanley APAC Summit

Tokyo

  • SGX- Maybank-Mizuho Singapore Corporate Day