StarHub (CC3) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was SGD 744 million (service revenue), down 7% year-over-year due to intense price competition and ARPU declines in the consumer segment; total revenue including all segments was S$969.7 million, down 14.1% year-over-year, mainly due to lower Consumer and Enterprise contributions and Ensign deconsolidation.

• EBITDA for H1 2026 was SGD 158.6 million, reflecting operating leverage challenges and lower gross profit from revenue pressure.

• Reported net profit after tax was SGD 258.1 million, boosted by a one-off gain from the partial divestiture/termination of Assigned Rights in Ensign InfoSecurity; underlying NPAT was SGD 12.4 million excluding this gain.

• Enterprise orderbook grew nearly 50% year-over-year, with managed services up 24% and strong demand for AI-enabled infrastructure.

• Management reaffirmed full-year 2026 guidance, expecting EBITDA at 75%-80% of 2025 levels and positive free cash flow.

Financial highlights

• Service revenue (excluding Ensign) was SGD 744.4 million, down 6.7% year-over-year; total revenue was S$969.7 million, down 14.1% year-over-year.

• EBITDA was SGD 158.6 million, down 23.8% year-over-year.

• Reported net profit after tax was SGD 258.1 million, mainly from a one-off gain of SGD 245.7 million from Ensign divestiture.

• Free cash flow was SGD 40.6 million; cash and bank balances at SGD 515.7 million.

• Net debt to EBITDA was 2.39x as of June 2026.

Outlook and guidance

• Full-year 2026 EBITDA expected at 75%-80% of 2025 EBITDA.

• Capex commitment projected at 13%-15% of total revenue, including 5G and IT investments.

• Interim dividend of SGD 0.03 per share declared; full-year dividend outlook reaffirmed at minimum SGD 0.06 per share.

• Positive free cash flow anticipated for the full year, despite increased investment in IT, cybersecurity, and network in H2.

• Continued focus on cost optimization, targeting SGD 70 million annualized savings by 2028, with 10% achieved by June 2026.