SingTel, Starhub & M1: A Comparative Analysis

(Z74 = SingTel, CC3 = Starhub, B2F = M1)

SingTel Singapore Telecommunications Limited, together with its subsidiaries, provides services and solutions in fixed, mobile and data communications, Internet, IT and consultancy, and satellite.

Wireline services include cable-based and satellite-based fixed telecommunications network services, such as domestic and IDD services, leased lines, data communications, lease of satellite capacity, Inmarsat, and Internet services. Wireless services comprise mobile telecommunications services, such as cellular and paging services, and sale of handsets and pagers. Information technology and engineering services portfolio consists of information technology consultancy, systems integration, and engineering services. Other businesses include subscription television; technical and management consultancy services; ownership and chartering of barges; provision of storage facilities for submarine cables and related equipment; billing services; IT disaster recovery services; operation and maintenance of fibre optic network between Brisbane and Cairns; research and development of software; and managing and operating a call centre for telecommunications services.

Singapore Telecommunications provides its services to corporate and consumer markets primarily in Singapore and Australia. The company was founded in 1879 and is headquartered in Singapore, Singapore. Singapore Telecommunications Limited is a subsidiary of Temasek Holdings (Private) Limited. SingTel also has extensive overseas investments in Mobile operators around Asia. These include Bharti Airtel of India and Telkomsel of Indonesia. Starhub StarHub, Ltd., an info-communications company, provides a range of information, communications, and entertainment services over its fixed, cable, mobile, and Internet platforms for residential and commercial customers in Singapore.

Mobile services include 3G that enables users to make video calls and 3.5G that offers broadband Internet access over mobile phone; mobile voice services; mobile data services, including video downloads, Web SMS, MMS animation and wallpapers, MMS retrieval centre,

Disney mobile, mobile ESPN premiership, and themes, as well as call, MP3, and true tones; green prepaid card; and roaming services. Cable TV services comprise operation of news, movies, entertainment, sports, music, and education channels. Broadband services include mobile and home broadband access, as well as other Internet services; and fixed network services comprise voice, data, Internet, and wholesale services for businesses. StarHub offers online value-added services, such as online music portal; email and broadband content filtering service, family access network, and anti-virus email scan services; data/Web storage services; corporate portal and IP-VPN solutions; and content creation and development solutions.

It is also involved in the sale of customer premise telecommunication equipment. The company was incorporated in 1998 and is based in Singapore, Singapore. StarHub, Ltd. is a subsidiary of Asia Mobile Holdings Pte., Ltd. MobileOne MobileOne, Ltd. provides cellular mobile communications services in Singapore. It provides

a range of mobile voice and data communications services over its 2G/3G/3.5G network. international call services to mobile and fixed line users; and wireless broadband Internet services to home, office, and mobile users. a range of mobile voice, nonvoice, and value-added services on its cellular network and as an operator.

It has a network of operator-owned retail shops (M1 Shop) and operator-appointed distributor outlets in Singapore. As of December 31, 2007, MobileOne operated approximately 13 M1 shop outlets, as well as an e-shop, which sells mobile phones and accessories online. The company also had approximately 1,535,000 mobile customers comprising 856,000 postpaid customers and 679,000 prepaid customers. In addition, it involves in the research and development of mobile telecommunications product and services, as well as provision of after sales support and customer services. MobileOne has a partnership with Vodafone to provide a range of wireless business products and solutions, as well as has a joint venture with PLDT (SG) Retail Service Pte, Ltd. to provide prepaid mobile services. The company was founded in 1994 and is headquartered in Singapore, Singapore. Financials The following is a comparative financial analysis of the three companies: Profitability:

As can be seen SingTel has the highest margins whereas Starhub has the highest profitability ratios. However, SingTel has contributions from associates above the EBITDA line, so this skews the results. Leverage & Multiples:

SingTel has the strongest leverage ratios. However it is also the most expensive, compared to M1 which is the cheapest stock, and has the highest yield.

Comparison of StarHub, M1 and Singtel 31 December 2013

Posted on March 5, 2014 by limkimtong

StarHub and M1 released their full year results ended 31 December 2013. Singapore Telecom (Singtel) has a different year-end, ending 31 March 2014. It released its ninemonth results ended 31 December 2013 instead. The table below shows comparisons using some key ratios and results.
StarHub (1 year) M1 (1 year) Singtel (9 months)

Net Profit

$370.7 m (+3.2%)

$160.2 m (+9.4%)

$2,753.7 m (+ 4.3%)

EPS

21.5 cents

17.4 cents

17.28 cents

Dividend

20 cents

21.0 cents *

6.8 cents (interim)

Dividend payout ratio

93.0%

120.6%

NM

Net Asset Value per share (for group)

4.8 cents

42.8 cents

$1.41

Share price 31 Dec

$4.29

$3.27

$3.66

Dividend yield

4.66%

6.42%

NM

Share Price 4 Mar

$4.10

$3.39

$3.58

NM not meaningful * Special dividend of 7.1 cents (Total dividend of 14.6 cents in FY 2012) Net profit of M1 increased 9.4% for the year ended 31 December 2013 whereas Starhubs net profit increased 3.2%. Nine-month profit of Singtel increased 4.3%.

M1 proposed a special dividend of 7.1 cents on top of 7.1 cents final dividend resulting in total dividend for the year of 21 cents. The dividend payout on earnings per share (eps) was in excess of 100% at 120.6%. Starhub maintained the same dividend amount of 20 cents similar to the year before. It plans to keep to 20 cents for this year too. Dividend payout is 93.0% on eps. Dividend yield based on 31 December 2013 share price was 6.42% for M1 and 4.66% for StarHub. In terms of share price movement, the share prices of 31 December 2013 are compared against share prices of yesterday (4 March 2014). Share price of M1 increased (+3.66%) whereas the other two telco saw share prices declined. The table above also provides you with a sense of net asset value per share (at group level) and the share prices for comparison. Performance of Singtel is based on 9-month results ended 31 December 2013