StarHub and M1 reported gains in FY13 net profit

Find out which among Singapore telco's big 3 lead FY13 earnings race

Your guess is as good as ours.

According to Phillip Securities Research, StarHub and M1 reported gains in FY13 net profit, up 3% and 9% y-y respectively; SingTel reported 4%y-y gain in 9MFY14 net profit.

Here's more:

For the last quarter, ST and M1 reported 6% and 7% y-y gains respectively while 4Q13 net profit for STH was down 5% y-y, due to deferred tax in 4Q12. Dividend yields of > 4% from Telcos remain attractive. We continue to like M1 as our preferred pick among the 3 Telco stocks.

We remain cautiously positive on the sector as the Telcos continue to provide attractive dividend yields and stable earnings growth. Data monetization will continue to drive earnings growth ahead. We expect data monetizing in SG to continue gaining good traction in FY2014.

SingTel continues to deliver moderate earnings growth despite adverse FX movements and lower Optus revenue, due to improved margins on effective cost management. However, we have concerns over business outlook for Optus which operates in a challenging environment that is dominated by Telstra in Australia.

M1 continues to be our preferred top pick, as we think it stand to benefit most on improving mobile dynamics in SG. M1 proposed special dividends of 7.1 Scents per share, which would contribute to total dividend yield of over 6% for FY13.

Overall, we think the Telcos continue to be attractive investments, providing earnings as well as dividends growth potentials. 

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