StarHub Ltd FY2025 Financial Results: Analysis for Investors
StarHub Ltd released its FY2025 financial results, highlighting a year marked by challenging consumer market conditions, strong performance in enterprise segments, and ongoing cost optimisation measures. Below, we provide a structured review of key financial metrics, historical trends, dividends, and strategic priorities based on the company’s official disclosures.
Key Financial Metrics
| Metric |
2H2025 |
2H2024 |
FY2025 |
FY2024 |
YoY Change (%) |
| Total Revenue (S\$’M) |
1,224.0 |
1,262.8 |
2,352.8 |
2,367.7 |
-0.6 |
| Service Revenue (S\$’M) |
1,026.1 |
1,081.3 |
2,002.2 |
2,028.9 |
-1.3 |
| EBITDA (S\$’M) |
200.3 |
236.5 |
403.6 |
460.3 |
-12.3 |
| NPAT Attributable (S\$’M) |
38.5 |
78.4 |
86.4 |
160.5 |
-46.2 |
| Free Cash Flow (S\$’M) |
147.1 |
60.6 |
-24.7 |
162.2 |
n.m. |
| Dividend (cents/share) |
— |
— |
6.0 |
6.0 |
0 |
Historical Performance Trends
- Service revenue declined by 1.3% year-on-year, reflecting continued competitive pressures in Mobile, Broadband, and Entertainment segments. Regional Enterprise service revenue grew 2.9%, with Managed Services up 5.3% and Cybersecurity up 4.3%.
- EBITDA fell 12.3% YoY to S\$403.6M, mainly due to lower gross profit from segments with revenue declines, partially offset by higher other income.
- NPAT attributable to shareholders dropped sharply by 46.2% YoY, impacted by higher depreciation/amortisation, a one-off spectrum forfeiture payment (S\$14.1M), and no repeat of prior year’s DARE+ provision usage.
- Free cash flow was negative for FY2025, due to higher capex and transformation investments, but improved QoQ in 2H2025.
Exceptional Earnings and Expenses
- One-off forfeiture payment of S\$14.1M for the return of a 700 MHz spectrum lot, recognized in 2Q2025.
- Absence of a non-recurring DARE+ provision amounting to S\$22.6M, previously utilized in FY2024.
- Excluding these, adjusted NPAT would have been S\$100.5M, still 29.1% lower YoY.
Divestments and Corporate Actions
- Completion of D’Crypt divestment in February 2024, resulting in reduced contribution from this business in the current year.
- Ongoing focus on M&A to drive inorganic growth, especially within the enterprise segment.
Segment Performance
- Consumer: Mobile revenue fell 7.7% YoY, Broadband was nearly flat, and Entertainment dropped 7.1%. Churn rates remained stable, and ARPU for Mobile stayed at S\$22 while Broadband ARPU declined.
- Enterprise: Regional Enterprise business delivered growth, with Managed Services and Cybersecurity segments showing strong momentum. Managed Services order book grew 6.7% YoY.
Cost Optimisation and Outlook
StarHub initiated several cost optimisation measures, including legacy decommissioning, network optimisation, systems re-architecture, and business simplification. The company expects to identify further cost savings as transformation shifts from “build-and-invest” to “harvest” phase.
FY2026 Outlook and Priorities
- EBITDA expected to be 75–80% of FY2025, reflecting sustained competitive intensity and continued commercial flexibility in Consumer business.
- Capex planned at 13–15% of total revenue, including 5G and IT investments.
- Dividend policy maintained at minimum 6.0 cents per share or 80% of net profit attributable, paid semi-annually.
- Strategic focus on returning Consumer to profitable growth, scaling enterprise solutions, reinforcing cybersecurity, and delivering further operating efficiencies.
Conclusion: Performance and Investor Recommendations
Overall, StarHub’s financial performance appears weak for FY2025. The company faced revenue and profit declines across its core consumer segments, offset only partially by growth in enterprise and cybersecurity. Exceptional expenses and divestments further weighed on profitability. Cost optimisation efforts and enterprise segment growth provide some resilience, but consumer markets remain challenging.
Recommendations:
- If you are currently holding StarHub shares: Consider maintaining your position if you are focused on dividend income (6.0 cents/share remains steady) and believe in the long-term enterprise transformation and cost optimisation. However, monitor for further deterioration in consumer segments and keep an eye on execution of strategic priorities.
- If you are not currently holding StarHub shares: Exercise caution before initiating a position. The company’s weak profit performance and ongoing competitive pressures in consumer markets suggest limited near-term upside. Wait for signs of sustained recovery in consumer revenue, successful cost reduction, or further enterprise growth before accumulating shares.
Disclaimer: This analysis is based strictly on the company’s latest financial report and does not constitute financial advice. Investors should consider their own risk tolerance and conduct further research before making any investment decisions.
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