StarHub (CC3) Q2 2025 earnings summary

Executive summary

• Service revenue grew 3.0% year-over-year to $976.1M, led by regional enterprise, cybersecurity, and broadband, but offset by declines in mobile and entertainment.

• EBITDA declined 9.1% year-over-year to $203.3M, mainly due to lower mobile revenue and higher operating expenses from transformation investments.

• Net profit after tax attributable to shareholders was $47.9M, down 41.7% year-over-year, impacted by a one-off $14.1M spectrum forfeiture payment and higher depreciation.

• Aggressive market stance maintained to defend and grow revenue market share, especially in mobile and broadband.

• Strategic focus on scaling enterprise, enhancing cybersecurity, cost optimisation, and maintaining a strong capital structure.

Financial highlights

• Total revenue increased 2.2% year-over-year to $1,128.8M; service revenue up 3.0% to $976.1M.

• EBITDA margin on service revenue fell to 20.0% from 22.3% year-over-year.

• Free cash flow excluding spectrum payment was $16.2M; including spectrum payments, it was -$171.8M.

• Cash balance at period end was $479.9M; operating cash flow was $117M.

• Interim dividend of 3.0 cents per share declared; full-year outlook reaffirmed at minimum 6.0 cents per share.

Outlook and guidance

• Service revenue growth expected to continue, with enterprise managed services and regional ICT as key drivers.

• FY2025 EBITDA outlook revised to 88–92% of FY2024 (excluding non-recurring items), reflecting a more aggressive commercial stance.

• Capex guidance maintained at 9–11% of total revenue, with transformation investments concluding in 1H2025.

• Positive free cash flow trends expected to resume from FY2026 as spectrum payments subside.

• Dividend policy remains unchanged, targeting at least 80% of adjusted net profit.