Financial Analysis of StarHub Limited and SingTel Limited

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Table of Contents
Introduction......................................................................................................................................3
Financial Analysis...........................................................................................................................4
Income statement.........................................................................................................................4
Balance sheet...............................................................................................................................6
Cashflow statement......................................................................................................................7
Altman Z-score................................................................................................................................8
Financial Strength............................................................................................................................9
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................11
Appendix........................................................................................................................................12
Appendix 1.................................................................................................................................12
Appendix 2.................................................................................................................................12
Appendix 3.................................................................................................................................12

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Introduction
The following assignment has been undertaken to analyze the financial strengths and overall
market positions of the two communication companies, StarHub Limited and SingTel Limited.
The assessment of the financial statements such as the income statement, balance sheet, and cash
flow statement has been done. Following is a brief overview of both the companies.
StarHub Limited is a company that deals in info-communications and is a Singapore based
business (StarHub, 2018a). The company is primarily engaged in provision and operations of
telecommunication services and other businesses related to the industry of info-communications.
A wide range of information, entertainment and communication services are offered and
provided by the company for both corporate market as well as direct consumers (Bloomberg,
2018b). The products delivered by the company are Broadband, Paid television, mobile,
equipment sales and fixed network services on a network that is operationally integrated. The
mobile network that is operated by the company provides upwards of third generation (3G) and
fourth generation (4G) services to its customers (Reuters, 2018b). An island wide network name
as hybrid fiber coaxial (HFC) network is also managed by them which mainly deliver cable
broadband and television services (Reuters, 2018b). A wide range of business as well as home
multimedia content and services are offered and provided by the company.
SingTel Limited is a company in Singapore dealing with communication services. It is the
official communication arm of the Singapore government. The primary engagement of the
company is in the provision and operations of telecommunication services and systems as well as
investment holdings (SingTel, 2018a). Additionally, the company also offers internet services
and holds license rights and frequency spectrum for installing, operating and maintaining mobile
communication services and systems which include wireless broadband services and systems
(Bloomberg, 2018a). The company mainly operates in three segments, group enterprise, group
consumer and group digital life. The group consumer segment is comprised of consumer
business across countries such as Australia and Singapore, as well as the investment of the
company in countries such as India, Thailand, South Asia, Africa, Indonesia and Philippines
(Reuters, 2018a). The group enterprise segment is comprised of the business groups across

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countries such as Australia, Singapore, the United States, Europe and other regions. The focus of
the group digital life segment is on usage of the internet assets and technologies of the firm's
operating enterprises by entering the neighboring businesses. In terms of market capitalization,
SingTel is the second largest company to be listed in the Singapore Exchange, and is majorly
owned by the Singapore government company, Temasek Holdings.
External Comparison
SWOT
SingTel
Strength
The company has a mobile network of the next generation. It has availability of regional
associates and its enterprise business has a very strong performance.
Weakness
The business of the company is largely dependent upon the market of Singapore and the revenue
generated from mobile business of the company in Australia is decreasing.
Opportunity
The company needs to harvest the Asia Pacific region and other areas. It has a huge opportunity
of capitalizing into the broadband services and mobile data. The firm also has a huge potential of
growth in the associate markets.
Threat
One of the greatest threats to the company is possibility of changes and alterations due to
regulations. It is subject to a very high competitive pressure.
StarHub
Strength