Comparison of StarHub, M1 and Singtel – 31 December 2012

StarHub and M1 released their full year results ended 31 December 2012. Singapore Telecom (Singtel) has a different year-end, ending 31 March 2013. It released its nine-month results ended 31 December 2012 instead.

The table below shows comparisons using some key ratios and results.

 

  StarHub (1 year) M1 (1 year) Singtel (9 months)
Net Profit $359.3 m (+13.9%) $146.5 m (-10.7%) $2,640.1 m (- 2.2%)
EPS 20.9 cents  16.1 cents 16.5 cents
Dividend 20 cents 14.6 cents 6.8 cents (interim)
Dividend payout ratio 95.6% 90.6% NM
Net Asset Value per share 2.5 cents 38.1 cents $1.42
Share price – 31 Dec $3.85 $2.71 $3.30
Dividend yield 5.19% 5.38% NM
Share Price – 10 April $4.36 $3.02 $3.64

NM – not meaningful

StarHub did better than M1. Net profit for StarHub increased 13.9% but M1’s net profit declined 10.7%. Earnings per share for StarHub was 20.9 cents which was higher than M1’s 16.1cents.

Despite a drop in profit, M1 still wanted to give higher dividend 14.6 cents this year against14.5 cents in 2011. StarHub and M1 continued to give good dividend. Dividend yields  based on year-end share prices were 5.19% and 5.38% respectively.

In terms of dividend payout ratios, StarHub pays out 95.6% of earnings as dividend. M1 pays out 90.6% as dividend. “SingTel’s dividend payout ratio ranges from 55% to 70% of underlying net profit.” (Source: Singtel annual report 31 March 2012)

Since 31 December 2012, share prices of StarHub and M1 have risen. As at 10 April, StarHub rose 13.2%  and M1 rose 11.4%. Share price of Singtel increased by 10.3% over the same period. All three telcos see price increases of 10% and more.

The table above also provides you with a sense of net asset value per share and the share prices for comparison.

Performance of Singtel is based on 9-month results ended 31 December 2012. When the full year results ended 31 March 2013 is released, I will revisit this blog post again and see how Singtel performed against the other two telcos.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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