StarHub (CC3) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw continued intense price competition in Singapore's telco market, leading to revenue and profitability pressure, especially in the consumer segment.

• Service revenue declined 3.9% year-over-year to $445.7M, mainly due to lower contributions from Consumer segments and a 4.8% drop in Regional Enterprise revenue, partially offset by growth in Carrier & Voice, Enterprise Connectivity, and Cybersecurity Services.

• EBITDA fell 22.5% year-over-year to $77.7M, impacted by lower gross profit and higher operating expenses, while NPAT attributable to shareholders dropped 81.3% to $5.9M.

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

• Completed divestiture of a 17% stake in Ensign, strengthening the balance sheet and setting up for further monetization.

Financial highlights

• Q1 2026 revenue was SGD 450 million, down 4% year-on-year, mainly due to consumer segment declines.

• Total revenue decreased 6.1% year-over-year to $507.3M.

• EBITDA for Q1 was SGD 77.7 million, a 22% year-on-year decrease, reflecting lower consumer revenues and higher depreciation and interest expenses.

• Free cash flow remained positive at SGD 26.6 million for the quarter, down 16.9% year-over-year.

• Net profit attributable to shareholders was SGD 5.9 million, down year-on-year.

Outlook and guidance

• Expectation for positive free cash flow for the full year, with continued investment in IT, cybersecurity, and network capabilities.

• Enterprise order book grew over 50% year-on-year in Q1, expected to sustain this growth rate through H1 and year-end, driving future revenue.

• Targeting SGD 70 million in annual run-rate cost savings by 2028, with savings expected to flow to the bottom line as market stabilizes.

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

• Continued investment in platform resilience, compliance, and customer experience.