StarHub (CC3) Q2 2025 earnings summary

Executive summary

• Service revenue grew 3.0% year-over-year to $976.1M, driven by regional enterprise, cybersecurity, and broadband, while mobile and entertainment declined.

• 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, or $62.01M excluding a $14.1M one-off spectrum forfeiture payment.

• Fully acquired MyRepublic Broadband, consolidating broadband leadership and enabling cross-selling opportunities.

• 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.

• Free cash flow excluding spectrum payment was $16.2M; including spectrum payment, it was a deficit of $171.8M.

• Cash balance at end-June was $487M; net debt to EBITDA at 1.92x.

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

• Earnings per share were 2.6 cents basic for 1H2025.

Outlook and guidance

• 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, excluding the $188M 700 MHz spectrum payment.

• 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.

• Multi-year cost optimisation program underway, targeting minimum efficient scale and long-term sustainability.