StarHub (CC3) Q3 2025 earnings summary

Executive summary

• Sector remains in flux due to consolidation, cyber threats, and cost pressures, with a focus on building a stronger, healthier sector and positioning as a leading telco across consumer and enterprise segments.

• Strategy centers on four pillars: aggressive but value-focused consumer approach, doubling down on enterprise, cybersecurity investment, and cost optimization, with a roadmap to expand consumer offerings, scale digital infrastructure, and enhance cybersecurity.

• Ongoing cost optimisation initiatives and commitment to shareholder returns.

• Market expected to stabilize and recover by late 2026, with ongoing investments to retain and grow consumer and enterprise value.

Financial highlights

• 3Q2025 service revenue was $470.3M, down 4.7% YoY; 9M2025 service revenue was $1,446.5M, up 0.4% YoY.

• 3Q2025 EBITDA was $105.9M, down 7.6% YoY; 9M2025 EBITDA was $309.2M, down 8.6% YoY.

• 3Q2025 NPAT attributable to shareholders was $26.2M; 9M2025 NPAT was $88.2M, down 25.0% YoY excluding non-recurring items.

• Free cash flow for 3Q2025 was $123.6M, up from $65.5M YoY; 9M2025 free cash flow was $139.8M, down 16.4% YoY excluding spectrum payment.

• Other income rose by SGD 6 million in Q3, mainly from higher grant income.

Outlook and guidance

• 2025 EBITDA expected at 88%-92% of 2024 EBITDA, excluding one-off provisions.

• Cost savings of SGD 60 million targeted over the next three years, with further opportunities being identified.

• Dividend policy maintained for 2025, with future guidance to be provided in February 2026.

• Market stabilization and recovery anticipated at the back end of 2026.