StarHub (CC3) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was SGD 450 million (USD 445.7M), down 4% year-on-year, mainly due to intense price competition in the consumer segment and a 4.8% drop in regional enterprise revenue.

• EBITDA fell 22% year-on-year to SGD 77.7 million, reflecting revenue pressure, higher depreciation from spectrum costs, and increased operating expenses.

• Net profit attributable to shareholders was SGD 5.9 million, down 81.3% year-on-year, with free cash flow positive at SGD 26.6 million.

• The company maintains strong positions: number two in mobile and number one in broadband, despite aggressive market pricing.

• Strategic focus remains on multi-brand segmentation, enterprise scaling, cyber resilience, cost optimization, and maintaining a fortified balance sheet.

Financial highlights

• Revenue declined 4% year-on-year to SGD 450 million, mainly from consumer segment weakness; total revenue was USD 507.3M, down 6.1% year-on-year.

• EBITDA was SGD 77.7 million, down 22% year-on-year, with service EBITDA margin declining to 16.5% from 20.6%.

• Net profit was SGD 5.9 million, with free cash flow at SGD 26.6 million for the quarter, down 16.9% year-on-year.

• Cash position at quarter-end was SGD 867.2 million; net debt to EBITDA at 2.09x.

Outlook and guidance

• Free cash flow expected to remain positive for the full year, with continued investment in IT, cybersecurity, and network.

• Enterprise order book grew over 50% year-on-year, expected to drive multi-year revenue growth.

• SGD 70 million run rate cost savings targeted by 2028, with additional $10M in network optimisation savings identified.

• Further monetization of Ensign stake planned in 2026 to strengthen the balance sheet.

• Emphasis on returning to profitable growth, scaling enterprise orderbook, and executing selective M&A.