StarHub (CC3) investor relations material

Executive summary

• Navigating sector flux with a focus on long-term shareholder returns and positioning for market recovery by 2027 and beyond.

• Strategy centers on consumer market leadership, enterprise growth, cybersecurity investment, and cost/capital optimization.

• Aggressive but nuanced approach to market share, emphasizing quality and value over price, especially in mobile and broadband.

• Enterprise and cybersecurity segments showed growth, with managed services and digital infrastructure expanding regionally.

• FY2025 service revenue declined 1.3% YoY to $2.0B, mainly due to lower contributions from Mobile, Broadband, and Entertainment, partially offset by growth in Regional Enterprise (+2.9% YoY) and Cybersecurity (+4.3% YoY).

Financial highlights

• Total revenue for FY2025 was $2.35B, down 0.6% YoY; service revenue was $2.0B, down 1.3% YoY.

• EBITDA for FY2025 was $403.6M, down 12.3% YoY; net profit attributable to shareholders was $86.4M, down 29% YoY.

• Earnings per share at SGD 0.0445; free cash flow was $142.9M for FY2025.

• CapEx commitment at 6.7% of total revenue, better than expectations.

• Proposed final dividend of SGD 0.03 per share, total 2025 dividend at SGD 0.06 per share.

Outlook and guidance

• FY2026 EBITDA expected at 75%-80% of FY2025's EBITDA, reflecting ongoing competitive pressure and investment.

• CapEx for FY2026 guided at 13%-15% of revenue, mainly for IT, network, and cybersecurity.

• Positive free cash flow expected in 2026; dividend target reaffirmed at SGD 0.06 per share or at least 80% of adjusted net profit.

• Cost savings program increased to SGD 70 million (2026-2028), with most benefits realized in 2027-2028.