StarHub (CC3) Q1 2025 earnings summary

Executive summary

• Service revenue for Q1 2025 was SGD 464 million, down 0.7% year-on-year, mainly due to timing in the cybersecurity business and declines in mobile and entertainment, partially offset by growth in Regional Enterprise and Broadband.

• Net income for the quarter was SGD 32 million, down 18% year-on-year, impacted by lower EBITDA and higher depreciation from network investments.

• The company continues to execute a multi-brand, multi-segment strategy, focusing on premium, digital, and value segments to retain and grow market share.

• Transformation initiatives are nearing completion, with cost reduction and efficiency gains expected to accelerate, especially from 2026.

• EBITDA fell 5.2% year-on-year to SGD 100.2 million, impacted by lower gross profit and higher operating expenses.

Financial highlights

• Total revenue for Q1 2025 was SGD 540.5 million, down 2.4% year-on-year.

• EBITDA for Q1 2025 was SGD 100 million, reflecting reduced gross profit from mobile and lower roaming revenue.

• Free cash flow for the quarter was SGD 32 million, declining 63% year-on-year due to higher CapEx and working capital movements.

• Net debt to EBITDA improved to 1.26x, providing strong financial flexibility.

• EPS for the quarter was SGD 0.017 per share.

Outlook and guidance

• Guidance for the full year is reiterated, with expectations for positive free cash flow despite spectrum payments and final transformation investments.

• Remaining transformational investments are expected to complete by H1 2025, with higher operating and capital expenditures reflected in current results.

• Cost efficiencies from legacy system shutdowns and automation are expected to deliver meaningful savings from 2026.

• Continued focus on acquisitive growth and maintaining dividend commitments.

• Key 2025 priorities include defending/growing consumer market share, scaling regional enterprise, and driving long-term shareholder returns.