StarHub (CC3) Q4 2025 earnings summary

Executive summary

• Navigated sector flux with a focus on long-term shareholder returns, market recovery by 2027, and stable core business performance.

• Strategy centers on consumer market leadership, enterprise growth, cybersecurity investment, and cost/capital optimization.

• Aggressive but nuanced approach to market share, emphasizing quality and value over price, especially in mobile and broadband.

• Regional Enterprise Business grew 2.9% YoY, driven by Managed Services (+5.3%) and Cybersecurity (+4.3%), with increasing order book and regional expansion.

• Significant investments in cybersecurity and digital infrastructure to meet national and customer needs.

Financial highlights

• FY2025 service revenue declined 1.3% YoY to S$2.0B; total revenue was S$2.4B, down 0.6% YoY.

• EBITDA for FY2025 was S$403.6M, down 12.3% YoY; net profit attributable to shareholders was S$86.4M, down 29%-46.2% YoY due to one-off spectrum forfeiture.

• Earnings per share at S$0.0445; free cash flow was -S$24.7M, but would have been S$163.3M excluding spectrum payment.

• CapEx commitment at 6.7% of total revenue, below guidance; cash & cash equivalents at S$857M at year-end.

• Proposed final dividend of S$0.03 per share, total FY2025 dividend at S$0.06 per share.

Outlook and guidance

• FY2026 EBITDA expected at 75%-80% of FY2025, reflecting ongoing competitive pressure and investment.

• CapEx for FY2026 guided at 13%-15% of revenue, mainly for IT, network, and cybersecurity.

• Dividend target reaffirmed at S$0.06 per share or at least 80% of adjusted net profit.

• Positive free cash flow expected in 2026; cost savings program increased to S$70M (2026-2028), with most benefits realized in 2027-2028.