SINGAPORE (Aug 18): Starhub is exploring M&A opportunities to grow its revenue and market share in the enterprise segment. That was what Daiwa analyst Ramakrishna Maruvada found out following a recent visit to the company.

Among the areas the telco is interested in are cyber security, data analytics and Internet-of-Things (IOT). In particular, it is looking to scale its platform to secure bigger projects in the data analytics space.

The company also recently ventured into the cyber-security space with the opening of a cyber security centre of excellence in May and has announced plans to invest S$200 million, in conjunction with its partners over the next five years.

Starhub’s management also shared that its data-upsize offer plans are seeing healthy uptakes but demand for its SIM-only plans is weaker, compared to its peers.

In the pay-TV segment, “Starhub is facing challenges in managing its sizable pool of out-of-contract customers,” says Maruvada. The segment recorded a loss of 10,000 subscribers in its pay-TV subscriber base in 2Q16

In response, Maruvada says that the company is strengthening in local-content platform, an example being its recent equity investment in content production company, mm2 Asia.

In the prepaid and broadband segments, StarHub says that the outlook for its prepaid and broadband segments remains as stable.

Daiwa has a “underperform” rating for Starhub, with a target price of S$3.31.

As at 11.30 a.m., Starhub was up 0.8% at S$3.86.