StarHub EPL rights could pose short-term cost challenge: Analysts

SHORT-TERM cost challenges and potential cross-carriage measure regulation could put a dampener on StarHub's recent exclusive partnership with the English Premier League (EPL) for 6 years of broadcast rights, said analysts.

Citi Research's Arthur Pineda and Luis Hilado noted in a report on Monday (Feb 21) that the cost of the broadcast rights had not been factored into the company's earlier earnings before interest, taxes, depreciation and amortisation (Ebitda) margin guidance.

At its earnings call for FY2021 on Feb 11, StarHub had guided for lower Ebitda margins of at least 20 per cent for FY2022 and 23 per cent for FY2023 to support its Dare+ initiatives, which aim to grow gross profits and cut costs.