0247 GMT - StarHub is likely facing increased competition in Singapore, Morningstar's Dan Baker says, citing Simba, a new entrant in the local mobile market. The tough competitive outlook for StarHub's mobile, broadband and entertainment divisions will likely make it hard for the telecom company to earn above-cost-of-capital returns over the next decade, the senior equity analyst says in a note. StarHub's mobile revenue fell 4.1% in 2Q after dropping 4.6% in 1Q, he notes. Baker speculates that at least part of the mobile revenue pressure stems from the market share lost to Simba. Morningstar downgrades its moat rating for StarHub to no-moat from narrow, keeps the fair-value estimate of S$1.26 and sees the stock as fairly valued now. Shares are unchanged at S$1.22. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
October 22, 2024 22:48 ET (02:48 GMT)
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