StarHub H1 2025 Results and Strategy

Financial Performance

• Net Profit: Fell 41.7% to S$47.9m (from S$82.1m in H1 2024).

• Earnings per Share: Down 43.8% to S$0.026.

• Revenue: Rose 2.2% to S$1.13b, driven by:

  • Broadband (+4.4%)

  • Regional enterprise (+6.8%)

  • Cybersecurity services (+20.1%)

• Key Drag Factors:

  • One-off spectrum rights forfeiture cost of S$14.1m

  • Entertainment revenue fell 9.1% (subscriber losses)

  • Equipment sales dropped 2.9% (slower handset replacement cycle)

• Dividend: Interim dividend of S$0.03 per share declared (unchanged YoY).

• Outlook: EBITDA margin revised down to 88–92% of FY2024, reflecting aggressive competitive strategy.

Strategic Moves & M&A

• CEO Nikhil Eapen stressed an aggressive acquisition stance, backed by strong cash flow and low leverage.

• Recently acquired the remaining 49.9% stake in MyRepublic Broadband for S$105.2m.

• Acquisition seen as a “tactical response” to Keppel’s sale of M1 to Simba Telecom.

• Eapen welcomed consolidation in the market, calling it healthy for stabilisation.

• MyRepublic Broadband will remain independent, with plans to expand offerings (e.g., English Premier League content).

Consumer & Market Strategy

• Continued focus on low-cost market via Eight, its MVNO brand, positioned as a leader for price-sensitive customers.

• Strategy includes enhanced roaming benefits and multi-brand positioning to capture diverse segments.

• Mobile subscribers rose 8.2% (excluding inactive prepaid clean-up).

Cash Flow & Dividend Policy

• Free cash flow impacted by spectrum payment but expected to recover from FY2026.

• Full-year dividend guidance: ≥ S$0.06 per share remains unchanged.

✅ Bottom Line:
StarHub’s profit dipped sharply despite revenue growth, weighed by one-off costs and weaker entertainment/equipment sales. However, the group is doubling down on acquisitions and aggressive competition, particularly in broadband and low-cost mobile, to drive long-term market stabilisation and growth.

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