3 Key Insights From StarHub Ltd’s Management Team From Its Latest Annual Report

Telecommunications outfit StarHub Ltd  (SGX: CC3) had released its latest annual report a few months ago.

The report, which is is a great place to learn more about the telco, included a section with comments made by members of StarHub’s senior management team.

Here’re three key insights that I picked out.

A transformational year

“[Chief Executive Officer Tan Tong Hai:] 2015 was a transformational year for StarHub. We embarked on a digital transformation journey to strengthen our services and offerings to both our consumer and enterprise customers.”

StarHub could be renewing itself as its markets evolve. The past year saw the telco bring in two new faces to its senior management team in Chief Financial Officer Dennis Chia and Chief Marketing Officer Howie Lau. Elsewhere, StarHub has moved to offer big data analytics services for its enterprise customers and online streaming services for consumers through its Starhub GO service.

The new Chief Strategic Partnership Officer

“[Chief Strategic Partnership Officer Jeannie Ong:] This is a newly-created role and not quite commonly seen among Singapore-listed companies. We would like to believe this is a reflection of StarHub’s ability and commitment to stay ahead of the bigger trends in the business world and within the wider communities in which we are a member of.”

The changes in StarHub’s senior management team also came in the form of a new role, namely the CSPO. Ong had relinquished her position as CMO to take on a newly-created role which is designed to help StarHub stay ahead of its  industry trends. The CSPO role will entail establishing and maintaining relationships with government agencies, content owners, partners, and complementary companies.

The evolving competitive landscape and mergers and acquisitions

“[CFO Dennis Chia:] We are operating in an environment where the traditional way of running a telecoms business is slowly disappearing. You no longer need to invest in CAPEX intensive networks or be based locally. You could develop an OTT app that has global appeal and your office can be offshore.

In that light, we are looking at adjacent businesses that will help our existing business leap-frog our growth. We will look at each opportunity with a measured financial approach and will definitely keep the market abreast of such developments.”

Change is the operative word here. Chia believes that the traditional way of running a telco business may be disappearing. For instance, Netflix is offering its online streaming services worldwide (including Singapore) but it is based out of the US. In this sense, StarHub may be drawn into competing at a global instead of national or even regional level.

In this context, Chia may be leaving the door open for a future acquisition by StarHub that may help the company tap on its existing strengths.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Netflix.