Table Of ContentMany Lives of
StarHub Ltd Annual Report 2014
Hubbing lives as our customers do.
We understand that our customers' lives are
more complex than ever before. The many
roles they play require them to blend different
activities throughout their day.
Hubbing empowers lives.
Our ViSiOn
StarHub is a business guided
To be Singapore’s frst
choice for information,
by the diverse needs of more
communications and
entertainment services.
than 742,000 households.
Our MiSSiOn
As these needs evolve and
To provide every person,
home and business in
the lines between home and
Singapore with world-class
multimedia services
offce and between work
and content.
and leisure continue to shift,
Our COre VAlueS
ExCITe: Excellence, Creativity,
StarHub’s role in the lives of
Integrity, Teamwork.
our customers remains more
relevant than ever.
Online AnnuAl RepORt
www.starhub.com
– Presentation of the year’s key content
– PDF of annual report from the year
– Senior Management team review of 2014
COrpOrATe prOfile
Contents
StarHub is Singapore’s fully-integrated
info-communications company, offering a
full range of information, communications An introduction Overview
and entertainment services for both to our report Key Figures 02
with a snapshot The Group Today 03
consumer and corporate markets. StarHub of the Group's
Our Financial Highlights 04
business and key
operates a mobile network that provides highlights.
4G, 3G and 2G services. It also manages
an islandwide HFC network that delivers
multi-channel pay TV services (including Insight into strategy
our Group's Chairman’s Message 14
HDTV, Internet TV and on-demand leadership
Board of Directors 18
and our
services) as well as ultra-high speed In Discussion with StarHub’s Management 24
management’s
residential broadband services. StarHub approach on how Senior Management 32
we create value. The Nucleus Connect Conversation 36
operates an extensive fxed business
network that provides a wide range of
Our key perfOrmance
data, voice and wholesale services. Over achievements
Hubbing in Review 40
Singapore’s fbre-based Next Generation and how our Group Financial Review 54
strategy is
Nationwide Broadband Network (Next delivered through Sustainability Report 2014 58
our Group’s Investor Relations 96
Gen NBN), StarHub offers a broad range
operations. Awards and Industry Honours 99
of home and business broadband plans
along with a host of advanced media-rich
Our framework gOvernance
value-added services, such as IPTV for for corporate Corporate Governance 100
commercial entities. gthoev erornlea anncde and Directors’ Particulars 114
Interested Person Transactions and
contribution of
our board. Material Contracts 175
Launched in 2000, StarHub has become
one of Singapore’s most innovative
info-communications providers, and the Statutory fnancial financials
statements with Financial Statements 117
pioneer in ‘hubbing’ – the ability to deliver the associated
Directors' Report 118
unique integrated and converged services audit report and Independent Auditors' Report 129
supporting notes.
to all its customers. StarHub, listed on the Notes to the Financial Statements 136
main board of the Singapore Exchange
since October 2004, is a component stock
Corporate Shareholding Information 176
of the Straits Times Index (STI) and the Information and
Notice of Annual General Meeting 178
MSCI Singapore Free Index. Notices Proxy Form
Corporate Information
StarHub ltd | Annual Report 2014 01
Financials Governance performance Strategy Overview
Key figures
DiviDenD Capimtalr
iKseatt ion
480%
20¢
ShCauremhuoladteivrse’ TRoetaulrn $7.2B
FY2014
Since FY2005 DeC 2014
+122% +208%
Since FY2005 Since FY2004
starHub STI (Points) StarHub ($)
share price
performance 4,000 StarHub 5
against D4ec. 120514
sti index
(from 2004 – 2014) 4
3,000
2,066
Dec 2004 STI
D3e,c3 260514 3
2,000
1.10 2
Dec 2004
1,000
1
0 0
02 many lives of HuBBing
The Group Today
The Group’s total revenue was at $2.39 billion due to higher equipment sales. Service revenue
ended 1.0% lower as a result of the lower Broadband revenue. Fixed Network Services recorded
the highest revenue increase YoY at 2.7%, followed by Pay TV revenue which gained 1.0%.
16%
52% FIxeD 9%
neTwoRk BRoAD-
MoBIle BAnD
7%
sAle oF
16% equIPMenT
PAy TV
Mobile pay TV Broadband Fixed Network
From 2011’s $1.23B From 2011’s $377M From 2011’s $243M From 2011’s $337M
+1.7% +3.2% -16.8% +12.4%
$1.25B $390M $202M $378M
2014 2014 2014 2014
TIeReD ChAnnel hIGh sPeeD ReVenue
PlAn MIx MIx PlAn MIx MIx
61% 39% 71% 29% 76% 24% 85% 15%
Tiered Non-Tiered Standard- High- High-Speed Non-High Data & Voice
Definition Definition Speed Internet
Mobile Revenue Pay TV Revenue Broadband Revenue Data & Internet Revenue
2011^ $1,227M 2011^ $377M 2011^ $243M 2011 $281M
2012^ $1,234M 2012^ $396M 2012^ $251M 2012 $295M
2013^ $1,243M 2013^ $386M 2013^ $242M 2013 $303M
2014 $1,248M 2014 $390M 2014 $202M 2014 $321M
3-year CAGR 3-year CAGR 3-year CAGR 3-year CAGR
0.6% 1.1% -5.9% 4.5%
^ Restated
tS arhbu tL d | nA nual eR port 2014 03
oev rview
5-Year Financial HigHligHts
Revenue ($m) Earnings Per Share (EPS) (cents) EBITDA Margin on Service
Revenue (%) mobile paY tv
+0.9% +4.4% +2.9% 2,147,000 542,000
3-Year CAGR 3-Year CAGR 3-Year CAGR on EBITDA Customers Households
The higher equipment sales resulted in EPS is calculated by dividing the Group’s EBITDA amounted to $747.9 million or
total revenue increasing $17.6 million or proft attributable to equity holders by 33.7% of service revenue for the full year. Revenue ($m) Revenue ($m)
0.7% YoY to $2,387.2 million. the weighted average number of ordinary
shares in issue.
2010 2011^ 2012^ 2013^ 2014 2010 2011^ 2012^ 2013^ 2014
2010 2011^ 2012^ 2013^ 2014 2010 2011^ 2012^ 2013^ 2014 2010 2011^ 2012^ 2013^ 2014
^ Restated Fixed
broadband
network
Hubbing Households (‘000)
Single YoY Double Triple YoY 469,000 $378m
Service Service Service
Households -4% Households Flat Households +6% Households
Revenue ($m) Revenue ($m)
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011^ 2012^ 2013^ 2014 2010 2011 2012 2013 2014
^ Restated
04 manY lives oF Hubbing starHub ltd | Annual Report 2014 05
350 2,238
342 2,323
337 2,434
327 2,370
313 2,387
240 15.3
244 18.8
232 21.4
219 22.0
219 21.4
200 28
205 31
214 33
227 33
242 34
236 1,181
243 1,227
251 1,234
242 1,243
202 1,248
332 395
337 377
358 396
368 386
378 390
Overview
m o b i l e
Pace Trend
Setter Setter
HuBBing
KeePS You AHeAd
0.9% 61% $1.25B With the choice to connect around the block
Lowest Post-paid Total Mobile and around the clock, StarHub’s innovative
Post-paid Base on Revenue mobile services keep our customers up to
Churn Tiered Plans date with the latest technology and content.
06 MAnY LiVeS of HuBBing StarHub Ltd ropeR launA | 4102 t 07
pay t v
Road Weekend
Warrior Warrior
HuBBing
BRingS You TogeTHeR
29% >225 $52 As our Pay TV content continues to reach
Hd Channels Pay TV Stable ARPu more homes and more businesses than ever
Channels YoY before, switching between work time and
downtime has never been as seamless.
08 many liveS of HUbbinG buHratS l dt | Annual Report 2014 09
b r o a d b a n d
Home deal
Maker Maker
HuBBing
KeePS You on THe go
With our cable and fbre broadband plans
0.8% 76% 469k offering speeds of up to 100Mbps and 1Gbps
Lowest High-Speed Households respectively, only StarHub customers enjoy
Quarterly Base the choice to live, work and play at their own
Churn pace in their own space.
10 many liveS of HUbbinG buHratS l dt | Annual Report 2014 11
