The annual net profit of StarHub has declined significantly in the year 2010. There has been a decline of around 18 per cent in the net profit figure of the company for the year. As per the initial reports, the hike in capital expenditure has pulled down the net profit of the company in the year under review.

The capital expenditure of the company was reported to be $272 million for the year under review. The company has reported the annual net profit of $263 million for the year that ended 31st December.

This decline in the net profit is the maximum drop since the initial public offering of the company in the year 2004. It is the second largest telecom company of Singapore.

However, the main reason behind the hike in capital expenditure was Nucleus Connect, which is the subsidiary of StarHub. The new customer relationship management and billing systems also continued to eat away at profits.

The subsidiary, Nucleus Connect deals in selling fibre-optic bandwidth packages to the Internet service providers in the nation.